Colombia Equity Fund targets European countries for distribution
The Colombia Equity Fund, a fund managed by Luxembourg-based Casa4Funds has raised more than $10m since it was launched in April 2012, the firm has confirmed.
The UCITS-compliant SICAV fund replicates the investment strategy of a local fund managed by Colombia’s asset manager Bolsa y Renta, appointed by Casa4Funds to manage Colombia equities.
“So far the Colombia Equity Fund is the only actively-managed fund available to European investors that wish to invest in the Colombian stock market. The fund seeks to achieve a substantial outperformance to the Colombian ColCap Index, which has seen an annualized return of 15% in US-dollars over the last 3 years,” the firm said.
The fund is registered for sale in Germany and is expected to be launched in other European countries for public distribution.
According to a spokeperson at the firm, the fund mainly targets institutional investors and this does not require local registration. The company will be able to quickly add new European countries as required by the clients, he added.
“Over the last couple of years, Colombia has turned into one the most exciting investment candidates in Latin American and offers very attractive prospects even in comparison with other global Emerging Markets”, said Linus Sluyter, head of International Wholesale at Bolsa Y Renta.
Sluyter added that especially in Europe, Colombia still remains mostly under the radar of professional investors, despite the fact that the country is attracting rapidly increasing capital inflows from around the world.
“But based on the feedback that we have received from our European contacts, we would expect to significantly increase the fund assets in the near future,” he said.