Emerging Markets Debt Investments

Forty years investing in emerging markets debt

We’ve been investing in emerging markets debt (EMD) for over 40 years. During this time, we’ve built a highly experienced team of over 50 fixed income professionals dedicated to EMD. The team spans the globe, with offices in London, Singapore, Hong Kong, Shanghai, Bangkok, Sydney, Kuala Lumpur and Abu Dhabi. They have the on-the-ground resources and expertise to deliver first-hand insights across bond markets, sectors, issuers – and the full credit spectrum.

Seeking to drive positive change

We have considerable local expertise across emerging markets. This includes a team of Mandarin-speaking investment professionals dedicated to China – giving us an invaluable window into this vital market. We also have experience investing in fast-growing Frontier Markets, at both the corporate and sovereign level. All these factors combined mean we can put our clients at the heart of some of the most compelling opportunities EMD has to offer.

Offering compelling investment opportunities

We analyse ESG risks and opportunities in every company and sovereign we cover. On-desk regional ESG specialists, supported by abrdn’s central ESG team, provide insight on ESG themes and sectors within local markets. We believe this helps us deliver EM solutions that target long-term positive outcomes for investors. We’ve also created the abrdn Asia Pacific Sustainability Institute – a centre of excellence and innovation dedicated to all aspects of sustainable investing.

Emerging market debt with ESG embedded

Environmental, social and governance (ESG) concerns are deeply embedded in our EMD investment process. This is because we believe intelligent ESG assessment and engagement can deliver better outcomes and enhance investor returns.

The Covid-19 crisis will ensure these are more important than ever as governments, companies and society must increasingly work together.

We combine thematic and sector research produced by our central ESG Investment team with issuer level insights created by our EMD team. This dual approach helps us fully understand how bond issuers manage their strengths and weaknesses.

Given the wide range of political systems in emerging market countries, we have created a proprietary Environmental, Social, Governance and Political framework. It helps us to assess the specific political risks associated with bonds issued by emerging market governments.