Emerging Markets Debt Investments

Risk warning

The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.

Research

Over four decades, abrdn has built deep relationships with industry and policymakers across emerging markets (EM). Today, over 100 EM professionals* networked across the globe conduct extensive analysis, including over 700 meetings** a year, to get the most complete insight into companies, countries and trends. We use technology to bring our global team together and improve our real-time insights. This enables us to keep pace with change and discover compelling opportunities at the corporate and country level.

*Both equity and debt, as at 17.01.2022

**as at 17.01.2022

Purpose

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. Through constructive engagement with companies and policymakers, all our EM professionals look to drive positive change. We believe this helps us deliver EM solutions that target long-term positive outcomes for investors.

Connectivity

We have considerable on-the-ground expertise across EM. This includes a team of Mandarin-speaking investment professionals dedicated to China – giving us unique insights into this vital market. Importantly, we have a long track-record of 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 emerging markets offer.

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.