Investment Strategies > Sustainable Emerging Market Corporate Debt Strategy

Sustainable Emerging Market Corporate Debt Strategy

Invests in emerging market corporate credits with strong sustainability profile and reduced carbon footprint

Established, track record in Emerging Market Corporate Debt
Diversified portfolio of EM corporate bonds issued primarily in USD with strong ESG focus
Combines top-down asset class analysis with bottom-up country and issuer analysis to seek out attractive relative value
Targets a 30% carbon intensity reduction and stronger sustainability profile¹ vs. the broader EM Corporate Debt universe²

EMD Capabilities Brochure

Available as a UCITS Fund

Jennifer Gorgoll

Senior Portfolio Manager

Nish Popat

Senior Portfolio Manager

Overview

Access exposure to the rapidly growing opportunity in emerging market credit with a stronger sustainability profile and reduced carbon footprint¹.

Investment Process

Top-down and bottom-up approach with multiple alpha sources allocated opportunistically

1. Top-Down Assessment of Global Market Conditions

Incorporates analysis of global economic drivers, individual country fundamentals, technical factors including supply and demand, and market pricing.

2. Bottom-Up County / Issuer Credit / Local Rates, EMFX and ESG Review

Includes fundamental analysis of issuers, integrates environmental, social and governance (ESG) scores, country credit worthiness and security analysis.

3. Strategy Setting, Risk Management and Portfolio Construction

Team combines top-down and bottom-up inputs with risk management to create a model portfolio.

4. Portfolio Customization Process and Performance Evaluation

Ongoing process and performance evaluation.
Portfolios are adjusted for client-specific guidelines.

The Key Sustainability Features of the Strategy

1. ESG EXCLUSIONS
Adoption of the NB Sustainable Exclusion Policy Covering UN Global Compact violators, civilian firearms, fossil fuels³, private prisons, controversial weapons, thermal coal, tobacco and child labor. In addition, companies ranked in the bottom decile based on their NB ESG Quotient will also be excluded

2. CARBON INTENSITY REDUCTION
Carbon Intensity Reduction of at least 30% versus the broader EM Corporate Debt universe⁴ Measured based on tons CO2 emissions per unit of revenue

3. BETTER ESG/SUSTAINABILITY PROFILE
Minimum 50% allocation to Sustainable Investments and higher Portfolio MSCI ESG Score compared to the broader EM Corporate Debt universe⁵ Based on ESG scores from an independent third party

4. ENGAGEMENT
Proactive engagement with corporate issuers to improve their overall sustainability trajectory We also engage on other topics such as severe controversies and low NB ESG Quotients.

Proven Multi-Site Approach

Our presence across three emerging markets time zones allows us 24 hour-a-day market coverage, access to local in-depth knowledge and research and timely execution of investment decisions.