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Emerging Markets Transition Debt Strategy

Investing at the intersection of return and impact

Wind Farm Brazil

Emerging Markets Transition Debt Strategy

Transition report 2025

Practical insights into how the Emerging Market Transition Debt portfolio promotes real-world transition to a low-carbon world.

Strategy overview

Investment Approach
High conviction, bottom-up driven investment process supplemented by a proprietary transition impact assessment framework to ensure that each investment promotes real-world transition, not only portfolio-level transition

Investment Opportunity
Differentiated alpha from investing in EM companies with credible commitments to transitioning to net zero or enabling a lower-carbon future

Investment Universe
An established universe of EM companies and projects – private and public debt.

Matt Christ
Victoria Harling
Alan Siow
Nathaniel Micklem
Olivia Carballo
Martijn Proos

The role the strategy can play in portfolios

Real-world transition contribution

Capital committed to financing both new infrastructure/industries that will speed up the energy transition, and heavy emitters with credible commitments to transitioning to net zero

Improved yield and credit quality

EM public credit exposure and inclusion of private credit can improve yield, and credit quality, reduce rates sensitivity, and enhance downside protection

Portfolio diversification

Emerging markets are typically under-represented in both public and private credit allocations and correlations with other major asset classes are typically low

Exposure to a structural theme

EM corporate credit is the key transition financing channel. Over 60% of current emissions are in emerging markets (defined as JPMorgan EMBI constituents)

Investment Philosophy

01

The sizeable gap in net-zero transition funding in EM creates a compelling investment opportunity

02

A blend of public and private credit is the best way to harness the opportunity set

03

Funding at commercial rates provides the potential for an attractive investment opportunity over the long term

Why Ninety One for Emerging Markets Transition Debt Strategy

01

EM is at the core of our business and in our DNA

02

Strategic commitment to funding and supporting a fair energy transition

03

Specialist credit skills and a differentiated approach to origination

04

Established public and private relationships across companies, counterparties, and originators

Key facts

  • Asset Subclass

    Credit

  • Currency

    USD

  • Team

    Fixed income team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Sustainable

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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.

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