Sustainable equity team
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Emerging Markets Leaders Strategy

Capturing structural growth opportunities through companies leading the EM transformation

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Featured insight

Deliberating EM equities

Emerging markets generate 58% of global GDP but represent just 9% of equity portfolios. To help investors unlock long-term value in the asset class, we share our latest ideas.

Strategy overview

Investment Approach
Bottom-up, high-conviction approach to investing in leading companies that have structural growth drivers, and enduring competitive advantages with an emphasis on sustainability

Investment Opportunity
Generating quality-growth returns in emerging markets, underpinned by sustainability

Investment Universe
All listed emerging markets equity securities, filtered by market cap, liquidity, revenue growth, balance sheet strength and research-based exclusions

Target Return
To outperform the index (net of fees) over 5 year rolling periods.

Juliana Hansveden
Portfolio Manager

The role the strategy can play in portfolios

High alpha potential

A concentrated, low turnover, c.4-7% tracking error portfolio can lead to high alpha potential

Leverage to EM quality-growth

Exposure to a portfolio with a long-term investment horizon and a quality and growth bias

Diversifier to traditional EM exposures

Style bias with sustainable underpinning is complementary to other EM equity approaches

Investment Philosophy

04

Investing in emerging markets is complex. It requires specialist knowledge and proprietary research to identify the most attractive opportunities

05

We believe that a bottom-up, high conviction approach, combined with a long-term investment horizon and active engagement, results in superior outcomes

01

The market systematically underestimates the size and persistence of economic profit generation where businesses have sustainable competitive advantages

02

Emerging market companies benefitting from structural and sustainable growth tailwinds have potential to produce economic
profit at above average rates through time

03

Positive and negative externalities will increasingly be priced by the market. A view that takes all material stakeholders into account is necessary to identify opportunities and assess risks

Key facts

  • Asset Subclass

    EM Equity

  • Currency

    USD

  • Inception date

    01/10/2022

  • Team

    Sustainable equity team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Sustainable

  • Comparative Benchmark

    MSCI Emerging Markets NDR

Portfolio & Holdings

Date as of 28/02/2025
Index
Strategy
Emerging Markets
99.5
Far East ex Japan
United States
United Kingdom
Europe ex UK
0.5
Cash and near cash
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 Leaders Strategy

01

Investing in EMs is complex. Our specialist knowledge and proprietary research helps us identity the most attractive opportunities

02

Our emerging markets expertise has been developing for more than 30 years

03

Engagement used to enhance leadership and sustainability

Strategy Literature

Contact our client service teams.

Get in touch

Risks

Concentrated portfolio

The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.

Currency Exchange

Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

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.

Equity Investment

The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.

Foreign Investment

Investing in foreign securities may be subject to risks pertaining to overseas jurisdictions and markets, including (but not limited to) local liquidity, macroeconomic, political, tax, settlement risks and currency fluctuations.

Sustainable strategies

Sustainable, impact or other sustainability-focused portfolios consider specific 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.

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