Ninety One has launched a sustainable equity strategy investing in emerging markets, ESG Clarity can reveal.
Managed by Juliana Hansveden, the fund will invest in themes such as climate change solutions, financial inclusion and access to digital infrastructure in underserved areas.
The group highlighted 70% of Sustainable Development Goals and Paris Agreement capital needs to be directed toward developing countries to achieve net zero, yet 88% of ESG funds are either global or developed-market focused.
Mimi Ferrini, co-CIO at Ninety One, commented: “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 will have a competitive advantage.”
Manager Hansveden, who sits within the thematic equity team, added: “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.”
The Ninety One Emerging Markets Sustainable Equity Strategy is available in UK, Switzerland, Italy and Germany.