Emerging Markets Blended Debt

Getting the most out of emerging market debt

Discover what the full EM debt opportunity set can do for you and how best to navigate it.

Oct 2, 2023

10 minutes

Grant Webster
Peter Kent
Vivienne Taberer

The fast view

  • Emerging market (EM) debt – spanning FX, local currency, hard currency, and corporate bond markets – is a diverse investment universe underpinned by a wide range of growing economies and companies. But it is under-owned in many portfolios.
  • EM fundamentals are robust and over the next few years, EM economic growth is set to outpace developed-market growth by the widest margin in a decade.
  • The past year’s performance reflects fundamental strength in EM, yet yields across the EM debt asset class remain high. This improves the income profile and return outlook while providing a buffer against future volatility.
  • EM debt provides portfolio diversification benefits and offers active investors a rich hunting ground, given the varied behaviour of individual asset classes across the cycle and the large dispersion across markets that sit within these.
  • A blended EM debt strategy allows investors to benefit from the divergent dynamics across the asset class while also capturing bottom-up selection opportunities across and within markets.

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Authored by

Grant Webster
Portfolio Manager
Peter Kent
Co-Head of Emerging Market Fixed Income
Vivienne Taberer
Investment Director

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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