Sustainable Investing in Emerging Markets

By Patricia Ribeiro - First Quarter 2020

There’s a lot of talk about environmental, social and governance (ESG) investing. However, few managers have focused on emerging markets—and that’s where we see a tremendous amount of potential.

When we engage companies in emerging markets on ESG issues, they’re often surprised. They may already be improving their environmental, social or governance practices, but no manager has ever asked them how their companies address ESG factors. This tells us we’ve found a significant opportunity.

I think we are pioneers in this space. We don’t see a lot of attention from other emerging markets equity managers on ESG or on the United Nations Sustainable Development Goals, which our strategy aligns with.

Watch my videos for more on our process and for examples of companies that are doing something good for the world, as well as generate alpha.

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      International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.