Schroders has launched an onshore version of its ISF QEP Global Emerging Markets fund in order to make the existing strategy more widely available to UK retail investors.
The fund will have exactly the same investment strategy as the existing offshore fund. Managed by the QEP team, led by Justin Abercrombie, the fund will have an investment universe of more than 4,000 companies across emerging markets on a daily basis. The team will focus on valuations and business quality to decide if the companies merit investment. Additionally, it will use a specific country risk framework to highlight any issues that may be relevant in those countries.
Entry into the fund is through an adviser or direct investment platform and the minimum investment is set by each platform. The ongoing charge is 1.06 per cent.
Comment:
Emerging markets have been showing signs of a comeback, with the MSCI Emerging Markets index up around 5 per cent this year alone, compared to the loss of more than 4 per cent last year.
Confidence is returning to the space and there have been political and economic improvements in numerous emerging market countries.
This newest fund launch from Schroders is using the same strategy as its offshore counterpart, which has been proving to be a solid investment. It has outperformed its benchmark – the MSCI Emerging Markets index – over the past year and has seen continuous inflows into the fund.
Its offshore version has more than 630 holdings across the world and its largest weightings are in investor favourites China and South Korea – as well as smaller, less developed markets.
Many look to emerging markets for growth, given the turnaround the space has gone through over the past two decades. Countries such as Brazil, China, and South Korea are quickly becoming developed countries, so this fund’s allocation to smaller, less developed spaces such as Indonesia, Taiwan and Thailand, are added bonuses as many managers have seen growth there.
