November 29, 2023. Ninety One, the global investment manager with an emerging market heritage and perspective, announces the development of its Emerging Market Transition Debt (EMTD) strategy to catalyse investment into the EM energy transition.
The strategy will aim to provide EM companies with commercial financing to support efforts in reducing real-world carbon emissions. It will provide credit to high-emitting companies which have strong potential to reduce emissions. This is a significant way to help bring about an energy transition, with the simultaneous goal of providing investors with an appropriate risk-adjusted return.
The EMTD strategy has been developed in collaboration with several global capital providers and advisors, including Cambridge Associates and Wiltshire Pension Fund.
Matt Christ, portfolio manager for EMTD, Ninety One: “Working closely with our foundational partners, we have purpose built this strategy, not only to maximize real world impact, but also to deliver commercially attractive risk adjusted returns. We’re well positioned to lean into the secular growth tailwind created by the urgent need to decarbonise emerging markets. EMTD is proof-positive that investors shouldn’t have to sacrifice return for impact.”
Nazmeera Moola, Chief Sustainability Officer, Ninety One: “A successful global energy transition is not possible without a successful emerging markets transition. This is the only way we will collectively achieve net zero. Specifically, we believe there is an opportunity to support and grow the corporate sector, by using debt to finance the climate-oriented evolution of their businesses. This provides competitive returns with substantial climate impact.”
The firm will work with leading companies in multiple emerging markets to support their transition activities when the solution is brought to market in early 2024.