Discretionary investment management firm Man GLG has launched an onshore version of its unconstrained emerging equity fund.
The long-only fund aims to generate returns above the MSCI Emerging Markets Free Index. It will typically hold 50 stocks blending value, quality, momentum and macro styles.
The London-based open-ended investment company is a mirror of the Dublin-domiciled Ucits fund, which was originally launched in September this year.
The offshore fund has achieved returns of around 6 per cent since launch according to FE Analytics data.
The fund will be run by co-portfolios managers Simon Pickard and Edward Cole, who both joined the firm from Carmignac Gestion in May.
Mr Pickard boasts 18 years experience across EMEA and the emerging markets, and has also held positions at Jupiter Asset Management and Argos Investment Managers.
Mr Cole has 14 years of experience in financial markets, and has previously worked as a co-manager for emerging markets strategies at Ashmore Group and Finisterre Capital.
Provider view
Richard Phillips, head of UK retail at Man GLG, the discretionary investment management business of Man Group, said: “We are committed to making our key strategies available to investors in the formats and domiciles they favour. Following the launch of the Dublin-based unconstrained emerging equity strategy in September, we are pleased to launch a mirror fund in the UK, which allows investors to access the performance and experience of Simon and Edward in a London-domiciled fund.”
Adviser view
Asif Sadullah, chartered financial planner at Yorkshire-based Pen-Life Associates, said: “I think funds investing in emerging markets could be seen as appetising from a client’s point of view. For clients who are savvy with these sorts of things, emerging markets is something that is actively on their radar.
“I think emerging market funds are also viewed as an attractive proposition by many advisers. We manage risk-rated portfolios, and having a small exposure to emerging markets makes sense for us.”
Mr Sadullah added: “I think there are lot of fund managers who view the EM space as an area of sustainable growth over a long period of time. The idea fund managers seem to be flogging more of is income. The traditional route for income such as gilts are not performing that well so these managers are increasingly pushing through their own unique way of doing that.”
Charges
AMC of 0.95 per cent
Verdict
Emerging markets have come under the spotlight in recent months. The hysteria amid the fallout of the Chinese market correction was well documented during the summer months. As the dust begins to settle, a number of fund managers have sought to identify the golden nuggets of opportunity. The potential of inflated returns compared to funds investing in developed markets is certain to whet the appetite of many investors, but, the dangers when it comes to investing in emerging markets remain the same.
Here, the 0.95 per cent product fee is slightly higher than the charge for similar products in the marketplace. The managers have had considerable past experience in investing in emerging markets and have worked for a number of reputatable firms in the past, which would go a some way in reassuring investors that their money is in capable hands.
On its own, the product is too high risk for many investors, but it could make a fine addition to a diversified portfolio.
