Ninety One’s newest investment solution aims to capture the sustainable growth opportunity in emerging markets
The Emerging Markets Sustainable Equity strategy looks to identify companies that capture structural growth opportunities in underserved areas, such as climate change solutions, financial inclusion, and access to digital infrastructure. The process incorporates a unique way of assessing value creation, unlocking value from sustainability, and engaging with companies to improve sustainability initiatives.
Given the lower levels of economic development in emerging markets, and with 88% of ESG funds global or developed market focused, the investment opportunity is substantial but also essential, with 70% of the SDG and Paris Agreement capital needing to go to developing countries to achieve net zero. The strategy complements Ninety One’s existing suite of sustainable capabilities, including Global Environment, UK Sustainable Equity, Global Sustainable Equity, Emerging Markets Sustainable Blended Debt and Global Multi Asset Sustainable Growth.
Juliana Hansveden, Portfolio Manager, Emerging Markets Sustainable Equity, Ninety One: “Our strategy has a differentiated lens on long-term potential, which allows time to engage with companies to improve sustainability outcomes. We set goals on an individual holding level covering areas such as net zero commitments and seek to drive improvement in the companies’ management of material externalities. We believe that this active engagement alongside a bottom-up, high conviction approach, results in superior outcomes.”
Mimi Ferrini, Co-Chief Investment Officer, Ninety One: “Our emerging markets heritage has taught us the importance of embracing change. Ultimately, this has helped shape our view that emerging markets companies benefitting from structural and sustainable growth tailwinds have potential to grow economic profit at above average rates over protracted periods of time. It is these quality companies that take all material stakeholders into account that we believe will have a competitive advantage, enabling us to deliver returns to our investors.”