Getting the most out of emerging market debt

The fast view

Emerging market (EM) debt 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: over the next few years, EM economic growth is set to outpace developed-market growth by the widest margin in a decade; and EM central banks are now in a strong position to start easing interest rates.
Recent performance reflects this fundamental strength, yet yields across EM debt asset classes remain very 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 diverse 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.

Ninety One is an active, global investment manager managing over $160 billion in assets (As of 12.31.2022). Our goal is to provide long-term investment returns for our clients while making a positive difference to people and the planet. Established in South Africa in 1991, as Investec Asset Management, the firm began as a small start-up offering domestic investments in an emerging market. In 2020, as a global firm proud of our emerging market roots, we demerged to become Ninety One. We are committed to developing specialist investment teams organically. Our heritage and approach let us bring a different perspective to active and sustainable investing across equities, fixed income, multi-asset and alternatives to our clients - institutions, advisors and individual investors around the world.

Cynthia Holahan
Head of Marketing, North America
Cynthia.Holahan@ninetyone.com
917-206- 5171

ninetyone.com/en/united-states
65 E 55 Street, FL 30
New York, NY 10022

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Ninety One

Cynthia Holahan
Head of Marketing, North America
Cynthia.Holahan@ninetyone.com
917-206- 5171

ninetyone.com/en/united-states
65 E 55 Street, FL 30
New York, NY 10022

View the contributor page