J O Hambro Capital Management has launched an emerging markets fund as investors return to the asset class.
The JOHCM Emerging Markets fund, an Irish-domiciled UCITS, takes a high-conviction, multi-cap approach, to capture opportunities across the spectrum of the asset class.
The fund’s three-strong team, led by Emery Brewer, consider companies with secular growth prospects alongside those with potential for recovery growth.
At least 80% of the fund’s net assets will be invested emerging market equities and equity-related instruments and it will seek to outperform the MSCI Emerging Markets Index, with net dividends reinvested, over a five-to-seven-year period.
Brewer has run the institutional version of the strategy for more than 25 years, including at his previous firm, Driehaus Capital Management, while Ladislav Sabo and Dalibor Kováč have supported him since 2010. Together, the team manages $1.2bn of assets in emerging market equities.
Brewer said: “After more than a decade overshadowed by US equities, emerging markets are drawing investors back. But the index is a blunt way to capture them: ownership has narrowed to a handful of large companies and markets, and the best opportunities increasingly sit outside it, in businesses most investors never look at. That is where we invest.”
