RWC Partners has launched a new fund for its popular emerging and frontier markets team.
The RWC Next Generation Emerging Markets fund will be managed by James Johnstone (pictured), who, alongside John Malloy, heads up RWC’s emerging and frontier markets team.
The fund is aimed at offering investors unconstrained access to growth opportunities in the emerging and frontier market universe which are under-represented by current funds and will follow an existing strategy managed by the team since 2014.
At launch on 20 March 2019, the fund will hold between 50 and 70 positions with minimum market capitalisations of $750 million (£574 million) or daily dealing volumes of at least $2 million.
The fund has an annual management charge of 1% and a TER of 1.4%.
The portfolio will have exposure to investment themes such as urbanisation and will include investments in financials, real estate, consumer staples and industrials.
‘Our opportunity set here spans both the smaller emerging economies and the larger, more liquid frontier markets,’ Johnstone said.
He explained that the MSCI Emerging Markets index is highly concentrated, with 86% in eight countries and the remaining 16 countries representing only 14%.
‘By investing in countries at an earlier stage of development versus large emerging markets – such as China, Brazil, India and Russia – we’re aiming to provide differentiated exposure to rapidly developing economies which also have low correlations to both developed markets and each other, resulting in a truly diversified range of companies and countries.’
RWC’s Global Emerging Markets fund has returned 51.4% over the last three years to the end of December in a sector where the average return was 42%.