4Factor team

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

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

Performance

Portfolio & Holdings

Date as of 31/03/2026
Strategy
Index
Mercados emergentes
86.3
Estados Unidos
5.8
Extremo Oriente excluido Japón
5.4
Reino Unido
1.8
Europa excluido el Reino Unido
Efectivo y cuasi efectivo
0.7
Based on a related portfolio within the strategy with substantially similar objectives, policies and strategies 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 here.

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

Key facts

  • Asset Subclass

    EM Equity

  • Currency

    USD

  • Inception date

    01/10/2022

  • Team

    4Factor team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    Sustainable

  • Comparative Benchmark

    MSCI Emerging Markets NDR

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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