The Emerging Market Equity Fund is a UCITS product which will invest in companies headquartered in EM countries across Asia, Middle East & North Africa, Latin America, and North America or are exposed to their domestic revenue.
London & Capital chief investment officer Pau Morilla-Giner, who will oversee the management of the fund by L&C’s London-based investment team, said: “Recent market volatility has created attractive valuations in emerging market equities, which we believe still have significant room for growth thanks to strong GDP and consumer trends.
“However, this unpredictable stock market performance has clearly shown the need for an expert approach; underpinned by the robust risk controls we consider an L&C hallmark.
“We have launched this fund in our commitment to bring clients the best global opportunities in their portfolio, especially as the search for return remains paramount in a low yield environment.”
The company added that the fund has been launched to benefit L&C’s clients by complimenting its five existing UCITS funds across the fixed income and equity sectors.
The screening process for the fund includes “rigorous attention” to corporate governance and will target a high and growing dividend yield over the long term with a full FX hedging strategy to protect against fluctuations in the emerging currency markets.
It is currently more biased towards Asia Pacific due to good valuation levels and risk-reward opportunities.
“South-east Asia stock exchanges represent more than 60% of the total market capitalisation in global emerging markets and offer a broader set of opportunities than countries in other EM regions where the number of public-listed companies is lower and several sectors of the economy are not represented,” the company said.
