Emerging Markets Sustainable Blended Debt Strategy

Sustainable portfolio construction aiming for consistently compelling ESG-adjusted returns in EM debt.

Strategy overview

The strategy aims to generate improved risk-adjusted returns via a total-return, benchmark-agnostic approach. It places a heavy emphasis on proprietary, forward-looking ESG scores.

Key features
  • Invests across the broad EM opportunity set, including hard currency bonds FX and local rates, and green and sustainable bonds.
  • Places a heavy emphasis on proprietary, forward-looking ESG scores to focus on countries with improving sustainability trends.
  • Regular engagement with bond issuers, with a focus on climate change/nature risks and budget transparency, aims to help them to improve ESG metrics.
We think countries with improving ESG metrics will build more sustainable economies and will unlock higher productivity, leading to outperformance of their assets
Peter Eerdmans

Investment approach


  • Builds on Ninety One’s successful Blended debt strategy and process
  • Bottom-up approach selects individual best ideas1 to achieve desired top-down allocation
  • Driven by strong proprietary ESG platform


  • ESG has a 50% weight in the bond and FX investment scorecards
  • Maximum 10% in non-sustainable investments in negative-scoring countries.
  • Includes green bonds and sustainable bonds


  • Invests in a total return, benchmark-agnostic fashion
  • Targets outperformance versus the benchmark2

1 Best Ideas’ represents our highest conviction ideas following fundamental analysis.
2 Benchmark: 50% GBI EM Global Diversified 50% JP Morgan EMBIG Diversified. Outperform the performance comparison index (net of fees) over a full market cycle.


No result found

Contact our client service teams.

Get in touch

General risks. The value of investments, and any income generated from them, can fall as well as rise. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made. Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.

Specific risks. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Sustainable Strategies: Sustainable, impact or other sustainability-focused portfolios consider pecific factors related to their strategies in assessing and selecting investments. As a result, they will exclude certain industries and companies that do not meet their criteria. This may result in their portfolios being substantially different from broader benchmarks or investment universes, which could in turn result in relative investment performance deviating significantly from the performance of the broader market. Emerging and Frontier market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Important information
This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.