RWC Partners has announced the launch of the first Ucits version of its global emerging markets equity strategy in November.
This long-only fund, RWC Global Emerging Markets Equity Fund, comprises 50 stocks and will be a sub-fund of RWC’s Ucits range that accounts for $5.4bn (€4.8bn) of the company’s total $11.4bn (€10bn) of assets under management as at 31 July 2015.
John Malloy and James Johnstone head the 15-professional RWC’s GEM team, managing over $1.3bn (€1.1bn) within their emerging market, frontier and Asian strategies.
Malloy’s strategy invests across both emerging and frontier markets, with a focus on companies exhibiting strong growth characteristics that are not yet reflected in the share price.
The strategy focuses on opportunities that are not yet broadly followed, whether in large markets like China, or in markets with few foreign participants such as Saudi Arabia or Bangladesh.
Dan Mannix, CEO of RWC Partners, commented: “Inevitably the focus of this launch will be on the contrarian timing given the high levels of volatility seen in recent months. In fact it should be seen as a long-term opportunity to invest in exciting companies with a market leading equity team.
“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.”
“The Ucits space has been dominated in recent years by highly successful franchises of two or three emerging market teams. Given the difficulty of establishing fully formed GEM 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. It has allowed us to establish a fully formed, stable and proven GEM team in a short space of time.
“To date the majority of investors in their strategies are US institutions. From the research we have done it is clear there is significant demand within Europe for the strategy. The team, approach and performance combine with a need for new ideas in the space to form a really compelling proposition.”