Fixed income team

Emerging Markets Local Currency Total Return Debt Strategy

An unconstrained approach, targeting a smoother return path

Strategy overview

Investment Approach
Explores opportunities across the entire investment universe, without index constraints. Proprietary ESG analysis and process embeds ESG risk management in portfolio construction

Investment Opportunity
Caters to investors who seek access to the EM local currency debt asset class via a smoother return path than the overall market

Investment Universe
Full EM opportunity set, including FX and local rates, and (opportunistically) hard currency debt

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

Antoon de Klerk
Portfolio Manager
Werner Gey van Pittius
Co-Chief Investment Officer, Fixed Income

The role the strategy can play in portfolios

Enhanced yields

Provides yield pick-up available from the local EM debt universe, with a focus on structurally improving markets

Lower volatility EM market exposure

Aiming for lower volatility than the market; biased towards lower volatility markets

Exposure to long-term growth drivers

Favours economies with improving long-term dynamics and superior return potential over the long term

Diversifying EM allocation

Aims to outperform in falling markets and provide a higher risk-adjusted return profile than the overall market

Investment Philosophy

01

We believe a total return strategy that aims to deliver superior risk-adjusted returns is best served by a bottom-up approach that rewards economies with structural resilience

02

We believe an assessment of an economy's structural characteristics through the lens of economic fundamentals, valuation and market behaviour, combined with shorter-term cyclical views, can provide a sustainable, repeatable way to invest successfully in this space

03

Diversification through a disciplined portfolio construction process, incorporating carefully structured risk budgeting, will manage direct risk and moderate overall portfolio volatility

04

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

Performance

Portfolio & Holdings

Date as of 31/03/2026
Strategy
Index
AAA
1
AA
4.5
A
25.7
BBB
40.2
BB
16.3
B
3.8
CCC
0.9
C
0.2
Cash and near cash
7.4
*Bond ratings are Ninety One approximations.
Based on a related portfolio within the strategy with substantially similar objectives, policies and strategies 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 here.

Why Ninety One for Emerging Markets Local Currency Total Return Debt Strategy

01

EM is at the core of our business and in our DNA. We are pioneers in EM local debt and understand the context from an emerging markets perspective

02

We have a tried and tested investment process designed for the asset class

03

We aim to stay ahead of an evolving universe through our proprietary innovation to deliver strong client outcomes

04

A passionate and highly motivated team, with analysts dedicated to EMD, with regional and sector responsbilities. We apply an industry leading toolkit of econometric and valuation tools

Strategy literature

Key facts

  • Asset Subclass

    Sovereign

  • Currency

    USD

  • Inception date

    01/01/2014

  • Team

    Fixed income team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Enhanced Integration

  • Comparative Benchmark

    JPMorgan GBI-EM Global Diversified Index net of tax

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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.

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