Featured insight
Deliberating EM debt
Our EM debt team tackles the topics that are top of investors’ minds and provides insights for asset allocators currently deliberating EM debt.
Strategy overview
Strategy overview
Investment Approach
Bottom-up high-conviction ideas are used to build the portfolio in line with top-down targets. Proprietary ESG analysis and process embeds ESG risk management in portfolio construction
Investment Opportunity
Core solution for EM debt exposure, seeking to tap into the best opportunities across the investment universe
Investment Universe
Broad EM opportunity set, including hard currency bonds (sovereign and corporate), FX and local rates
Target Return
Outperform the performance comparison index (net of fees) over a full market cycle
The role the strategy can play in portfolios
Broad exposure to EM debt
Provides access to a wide range of opportunities across the EM debt universe in a single portfolio
Diversified growth solution
Actively invests across the entire investment universe, avoiding exposure to a single theme or country
Access to EM's yield pick-up
Aims to harness EM debt's yield pick-up and exploit the broad array of relative-value opportunities
Cost-effective and efficient solution
Bottom-up approach selects individual best ideas to achieve desired asset allocation, avoiding excessive trading
Investment Philosophy
Key facts
Asset Subclass
Sovereign & CreditCurrency
USDInception date
01/04/2012
Team
Emerging market fixed income teamGeographical Focus
Emerging MarketsESG Classification
Enhanced IntegrationComparative Benchmark
50% JPM GBI-EM Global Diversified Net, 25% JPM EMBI Global Diversified, 25% JPM CEMBI Broad Diversified (pre 011219 50,30,20)
Portfolio & Holdings
Date as of 31/10/2024
Credit breakdown (%)
Currency positions (%)
Geographic breakdown (%)
Maturity profile (%)
Sector breakdown
Top holdings (%)
Portfolio Statistics
Index
Strategy
AAA
0.1
AA
5.8
A
23.9
BBB
38.1
BB
20.5
B
7.3
CCC
2.4
CC
0.6
C
0.1
D
0.2
Not Rated
1
Cash and near cash
*Bond ratings are Ninety One approximations.
Based on a related portfolio within the strategy with substantially similar objectives as those of the services being offered. The portfolio may change significantly over a short space of time. This is not a buy, sell or hold recommendation for any particular security. For further information on Indices and Specific Portfolio Names, please reference the sections in https://ninetyone.com/-/media/documents/miscellaneous/91-further-information-en.pdf.
Why Ninety One for Emerging Markets Blended Debt Strategy
Contact our client service teams.
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.
Emerging 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.
Interest Rate
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.