RWC Partners wil launch its first emerging markets fund for UK retail investors after it acquired the Everest Capital team earlier this year.
The RWC Global Emerging Markets Equity fund, which will launch in November, will be managed by John Malloy and James Johnstone who head the firm’s 15-staff global emerging market team recently acquired from Miami-based hedge fund Everest Capital.
The team will replicate their existing institutional strategy and will have around 50 holdings in the long-only vehicle, which will focus on hunting out value stocks.
RWC Partners chief executive Dan Mannix acknowledges that the timing of the fund launch is contrarian, considering the volatility in emerging markets at the moment.
He says: “The rate of growth of this team over the last two months exemplifies that there are a large number of investors who have the duration to look through these periods of volatility and have a need to have continuous exposure to the global emerging markets.
“Given the difficulty of establishing fully formed [global emerging market] teams it has been incredibly hard for new entrants to compete. The massive increase in allocations to the asset class over the last 10 years has meant investors are looking further afield but the options remain limited.
“RWC was able to take advantage of a highly unusual situation to bring John, James and their investment team over to RWC whilst maintaining their process, track record and having the support of a large number of their previous investors,” he says.
The global emerging markets team at RWC accounted for more than $1.3bn (£840m) in assets at the end of July, out of RWC’s total assets of $11.4bn.