Getting the most out of emerging market debt

Ninety One | Getting the most out of emerging market debt | This graph shows the rapid growth of the EM Debt asset class

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
Ninety One

Ninety One is an active, global investment manager managing over $158 billion in assets (As of 06.30.2023). 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
917-206- 5171
65 E 55 Street, FL 30
New York, NY 10022

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