Emerging market fixed income team
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Emerging Markets Corporate Debt Strategy

Fundamentally driven value investing in the best EM corporate debt opportunities

Strategy overview

Investment Approach
Rigorous approach to bottom-up selection, driven by views of global sector specialists. Proprietary ESG analysis and process embeds ESG risk management into portfolio construction

Investment Opportunity
To take advantage of mispricing and inefficiency in the EM corporate debt universe, which can provide a source of value over time

Investment Universe
Broad and diverse range of EM corporate bonds

Target Return
Outperform the performance comparison index (net of fees) over a full market cycle

Victoria Harling
Portfolio Manager
Alan Siow
Portfolio Manager
Team
Portfolio Manager

The role the strategy can play in portfolios

Access to a fast-growing market

Asset class has grown by over US$ 1 trillion in the last decade; now larger than the US high-yield and EM hard currency sovereign markets

Broad and diversified EM exposure

Provides access to a broad range of opportunities, spanning sectors and regions

A complement to DM credit

Seeks to benefit from EM corporate debt's higher spread and superior risk/return profile for comparable DM credit quality

Access to EM's high yield pick up

Aims to provide total returns from both capital appreciation and coupon payment, and harness EM's yield pick up

Investment Philosophy

01

We are fundamentally driven value investors. We take a global sector approach, which we believe, combined with a regional perspective overlay, deepens our analysis

02

A detailed bottom-up analysis of companies is essential to managing the downside risk of EM corporate debt and assess value

03

Following our Compelling ForcesTM approach can provide a sustainable, repeatable way to invest successfully in this space

04

The investment team and its structure is as important as the process

Key facts

  • Asset Subclass

    Credit

  • Currency

    USD

  • Inception date

    01/05/2011

  • Team

    Emerging market fixed income team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Enhanced Integration

  • Comparative Benchmark

    JPMorgan CEMBI Broad Diversified

Portfolio & Holdings

Date as of 31/10/2024
Index
Strategy
AAA
0.2
AA
5.9
A
21.6
BBB
31.3
BB
22.8
B
10.2
CCC
3.8
CC
0.2
C
0.2
Not Rated
4
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 Corporate Debt Strategy

01

Our EM heritage gives us a rich and differentiated perspective on this diverse opportunity set

02

Our systematic and disciplined approach identifies a wide range of opportunities and mitigates a number of potential risks

03

We have an experienced professional team dedicated to EM credit

04

We are thought leaders in EMD and provide clients with insights on key events and their investment impact, proprietary research and ESG information

Strategy Literature

Contact our client service teams.

Get in touch

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.

Liquidity

There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated.

The content of this website is made available for informational purposes only and should not be construed as an offer, marketing, solicitation or investment advice with respect to any investment products or services. The website has not been reviewed or approved by any regulatory authority and may contain information with respect to investments products that may not be registered in some jurisdictions.

Although we believe any information obtained from external sources to be reliable, we have not independently verified it, and we cannot guarantee its accuracy or completeness (ESG-related data is still at an early stage with considerable variation in estimates and disclosure across companies. Double counting is inherent in all aggregate carbon data).

Any decision to invest in the Strategy described should be made after reviewing the offering document and conducting such investigation as an investor deems necessary and consulting its own legal, accounting and tax advisors in order to make an independent determination of suitability and consequences of such an investment. This material does not purport to be a complete summary of all the risks associated with this Strategy. A description of risks associated with the Strategy can be found in the relevant offering or other disclosure documents where applicable. Copies of such documents are available upon request.

Additional information on our investment strategies not found here (ninetyone.com/-/media/documents/miscellaneous/91-further-information-en.pdf) may be provided on request.

For more information on our Ninety One ESG Classification, please click here

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