Fixed income team
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Emerging Markets Local Currency Debt Strategy

Dynamically allocates to the best opportunities across EM FX and local rates

Rose quartz

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

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
A core investment solution for emerging market debt exposure

Investment Universe
Full local EM opportunity set, including FX and local rates

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

Werner Gey van Pittius
Portfolio Manager
Antoon de Klerk
Portfolio Manager
Christine Reed
Portfolio Manager

The role the strategy can play in portfolios

A long-term growth-seeking allocation

Tried and tested processes, which uses a strong bottom-up process within a rigorous top-down framework

Diversified return sources across EM

Active management of both FX and duration exposure across EM driven by bottom-up decisions

Exposure to the full EM local universe

Systematic approach seeks out the best ideas across the entire local universe, including frontier and off-benchmark names

Access to EM's high yield pick up

High conviction approach aims to fully harness EM's yield pick up,mispricing opportunities and diversification

Investment Philosophy

01

We are active managers and believe the large disparity of returns between countries provides opportunities for outperformance

02

Value is added primarily through relative country and currency positions as opposed to top-down or market-timing decisions

03

We believe three Compelling ForcesTM are key market drivers: economic fundamentals, valuation and market behaviour

04

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

Key facts

  • Asset Subclass

    Sovereign

  • Currency

    USD

  • Inception date

    01/08/2006

  • Team

    Fixed income team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Enhanced Integration

  • Comparative Benchmark

    JPMorgan GBI-EM Global Diversified Index net of tax

Portfolio & Holdings

Date as of 31/12/2024
Index
Strategy
AAA
AA
5.5
A
28.9
BBB
48.9
BB
16.6
B
CCC
C
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 Local Currency 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

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.

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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