The fund, which is domiciled in Luxembourg, will bring together stocks from the company’s four existing regional funds.
It is managed by Roberto Lampl, head of Latin America investment at the company who joined from Baring Asset Management at the end of last year, when Alquity revealed to International Adviser it planned to add to its existingf Africa startegy.
The company said the UCITS IV compliant fund will provide investors with exposure to growth in consumer demand arising from the rapid rise in income per capita within its top 10 countries, and ongoing urbanisation as populations begin to migrate to megacities.
The fund will employ the company’s “Transforming Lives” programme, in which up to 25% of the management fees will be donated in local communities to "widen opportunity and nurture ecomomic growth".
Alquity said this will create better returns over time as well as “creating jobs and getting businesses off the ground” within impoverished areas.
There is an entry charge of up to 5% for the fund, and an annual management fee of 1.9%.
Its performance fee will be 20% of the amount by which the fund has performed above its high watermark, and its inception date was 6 June this year.
"Attractive returns"
Chief executive Paul Robinson said the fund represents the culmination of the company’s four launches in 2014.
“With over three years’ track record behind us generating attractive returns for investors in our Africa fund, we are now in a position to offer a broad range of investors exposure to emerging and frontier markets in some of the most exciting and rapidly growing regions in the world,” he said.
In its August factsheet, the fund’s top holdings were Vinamilk (6.5%), Naspers (4.2%) and Suramericana (3.7%)
Its largest geographic allocation is Mexico at 11%, followed by Nigeria (10.6%) and South Africa (8.5%).
Currently, 18.5% of its sector allocation is in food and beverage, while 17.7% is allocated to banks, and 13.4% to retail.
The company launched its Latin America Fund, Asia Fund, and Indian Subcontinent fund in April this year.
The Latin America Fund focuses on equities and fixed income securities in Mexico, Chile, Colombia and Peru.
The Indian Subcontinent Fund focuses primarily on New India and fast-growing private sector companies, with a remit that covers frontier markets including Pakistan and Sri Lanka.
Finally, the Asia Fund includes a 24% exposure to frontier markets such as Vietnam and Myanmar.
Graph showing the performance of Alquity's Latin America, Indian Subcontinent, and Asia funds over the last three months
