Smith & Williamson launches emerging markets fund

Smith & Williamson has launched an emerging markets fund focusing on value stocks.

The Smith & Williamson Emerging Markets Value fund will be managed by Richard McGrath, who works for AGF Management.

AGF is a significant stakeholder in Smith & Williamson and the firm also runs its Global Gold and Resources fund.

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Smith & Williamson said the new fund would seek to generate “long term capital growth together with some income” by investing in “undervalued companies with a strong franchise”.

The fund will be run with a strict value investment approach that Smith & Williamson called “30/30/30”.

All of the stocks in the fund will need to satisfy three criteria; the current price of the stock must be at least 30 per cent below its high from the past 18 months, it must have a price to earnings ratio (p/e) at least 30 per cent lower than its index and it must have a dividend yield of at least 30 per cent more than its index