Martin Currie’s new best-ideas, emerging markets Sicav has opened to retail investors with overweight positions in names such as Samsung Electronics and Petroleo Brasileiro.
The asset manager announced the Martin Currie GF Global Emerging Markets fund back in July, launching the portfolio for Kim Catechis and his investment team after they joined the company from Scottish Widows Investment Partnership in October 2010.
The Luxembourg-domiciled fund will hold 40 to 60 stocks without constraint at country or sector level. Over the past year, Catechis and his team have visited most of the major emerging markets at least once and have examined a range of sectors in each.
At launch, the portfolio’s top holding was Samsung Electronics, accounting for 5.2% compared with the MSCI Emerging Markets benchmark’s 3.1%.
The fund is also overweight Petroleo Brasileiro, Vale, Industrial & Commercial Bank of China and CNOOC. Overweights in Gazprom, Taiwan Semiconductor, Axiata, America Movil and Itau Unibanco complete the new fund’s current top ten.
Catechis, head of Martin Currie’s global emerging markets team, says: “We believe that despite the current global economic headwinds, the long-term investment case for emerging market equities remains entirely intact – and the opportunity set remains vast.
“Developing countries such as China, Brazil and India do face an ongoing battle to balance growth, inflation and credit availability and the market has clearly taken a more bearish stance lately. But in reality there has been very little change in fundamentals and this is reflected in our investment positioning.”
The initial charge for the fund is up to 5%and carries an annual management charge of 1.5%.
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