Russell Investments launches emerging markets fund
Russell Investments, the global asset manager with $155bn AUM, has launched an emerging markets fund, targeting active returns in small cap and frontier markets.
Russell has appointed sub-advisers across global, cap-specific, regional and country mandates. These include JK Capital (China, with an 8% weighting), Delaware (Global EM, 25%), Quantum (India, 6%), East Capital (Eastern Europe, 9.5%), Imara AM (Africa, 9%), Victoria 1522 (extended global EM, 18.5%) and Somerset (global small mid-cap EM and frontier, 12%).
The Emerging Markets Extended Opportunities fund is benchmarked against the Russell Emerging Extended Index Net which has returned over 12% since the beginning of 2012. This index includes frontier markets and as such represents the broader opportunity set across the asset class.
Scott Crawshaw, Russell portfolio manager, said: “There has been a great deal of change in the world of emerging markets investment over the last few years and clients are looking to further diversify portfolios into less efficient segments of the asset class. This fund deliberately targets these opportunities through specialist managers with the aim to enhance return expectations.
“Choosing the best money managers for a particular product and putting them together in the best way for investors are two of the key levers in our multi-asset solutions.
“We have launched this fund with an initial line-up of seven managers, two global managers and five managers selected on the basis of their perceived investment excellence within a specific subset of the asset class, where Russell believes active investment opportunities are high and sustainable.
“The fund structure will evolve over time as our manager research process continues to unearth new best-of-breed managers focused on attractive parts of the emerging markets asset class.”
The Emerging Markets Extended Opportunities fund will have a minimum investment of £1,000 and carry an annual management charge (AMC) of 1.3 per cent at launch.