Somerset opens small- and mid-cap emerging markets fund

Somerset Capital Management has launched its new fund targeting small- and mid-cap businesses in emerging markets.

The Somerset Emerging Markets Small Mid Cap EM All Country fund opens today with $30m (£19m) of seed capital and will be managed by Edward Robertson and Timothy Hay.

The fund’s strategy will see it target Somerset’s best research ideas across its portfolios with market caps between $1 billion and $7.5 billion and involves entering frontier markets such as Kenya and Slovenia.

Its launch factsheet shows the fund’s paper portfolio has lost money despite outperforming the MSCI Emerging Markets Index. The portfolio has lost 11.06% since inception in April 2011 compared with the benchmark’s 20.07% decline.

The launch portfolio is most strongly weighted towards Taiwan, at 11.9%. This is followed by China at 11.2%, South Africa at 10.3% and Korea at 9.6%.

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