Scottish Widows Investment Partnership (Swip) has launched three emerging markets-focused Sicavs.
The new vehicles are the Swip Sicav Emerging Markets Infrastructure, Emerging Markets Smaller Companies and Latin American funds. They are all concentrated portfolios with between 35 and 45 holdings each.
The Emerging Markets Infrastructure fund is managed by Divya Mathur, an investment director at the group. It aims to benefit from increased spending on infrastructure in developing countries.
Emerging Markets Smaller Companies looks for opportunities in fast growing domestic economies, especially in relation to a burgeoning consumer class. It will be managed by Alastair Reynolds.
Jeff Casson, the manager of the group’s Latin American fund, will run the Latin American Sicav. He says investors will benefit from strong fundamentals in the region, low debt and a robust financial sector—especially in Brazil.
Stock selection on the funds follows Swip’s house investment process, with research aiming to identify emerging market companies with sustainable strong earnings growth rates that are trading below their intrinsic value, the group says.
Kim Catechis, the head of global emerging markets, says although there will be volatility in emerging market equities in the near-term, an expanding middle class and $12 trillion (£7.4 trillion) of infrastructure spending in the next decade will support growth over the long-term.