Announced in June, the Emerging Markets Equity High Yield and Premium Income Fund holds a mix of Chinese, Brazilian, Korean, Taiwanese, Singaporean and US stocks and focuses on telecoms, financials and other “semi-monopolistic” listed, exchange traded equities.
Until 1 June this year, the fund was known as the “Next 11 Emerging Markets Fund” and had a different investment strategy and investment objective.
The new fund will be available on a variety of offshore platforms and aims to target dividend income and premium income through the selling of covered call options on underlying stocks with inelastic demand, “quality” fundamentals, high dividend yield, and viable option markets.
The product is not available to US investors.
Angus Murray, investment manager, said: “It would be logical to assume that the fastest growing companies in the MSCI Emerging Markets Index would be the best performing stocks over a period of time. Our logical conclusion was fundamentally incorrect.
“Our conclusion on emerging markets is essentially the same as we determined on developed markets. We believe that semi-monopolistic, price-inelastic, large capitalisation equities with solid balance sheets and high dividend yields are significantly better investments.
