Thornburg Investment Management has added to its Ucits range with the launch of an emerging markets fund for Lewis Kaufman.
The Ucits version of the Thornburg Developing World fund is based on an existing US mutual fund strategy already managed by Kaufman and invests in developing market companies with strong domestic demand to seek long-term capital appreciation.
In common with the firm’s other equity funds, the Developing World strategy uses a bottom-up approach to identify quality companies with strong balance sheets and avoids focusing on macro trends.
Kaufman seeks firms with ample free cashflow that do not need to turn to the equity or bond markets in times of stress. The US strategy currently has 13.6 per cent of its portfolio in China, with 10.8 per cent in the US and 9.9 per cent in Brazil.
The manager says: “The strategy has an unconstrained approach, and invests in quality companies with an emphasis on end-markets exposure rather than country of domicile. We try to identify promising companies levered to domestic demand trends in the emerging markets.”
The asset management house also runs the Thornburg Investment Income, Thornburg Global Opportunities and Thornburg Global Equity Ex-US funds, all of which are domiciled in Ireland.
Thornburg Global Advisors president Peter Trevisani says: “We are pleased to offer the Developing World equity strategy to our global clients and investors, in addition to our existing Ucits funds.
“We specialise in global strategies, so expanding our funds to overseas clients is a natural progression for us.”