Hermes unveils Emerging Asia fund

Hermes Fund Managers has launched an Emerging Asia fund for manager Jonathan Pines.

The product is based on the group’s Emerging Asia strategy, which Pines has run since the end of 2009.

Focusing on China, Korea, Taiwan and India, it will be run using a contrarian, value-biased, high conviction strategy with an emphasis on stock selection.

The fund will be benchmarked against the MSCI Asia ex-Japan Index.

“Growth in the emerging Asia region continues to outpace that of the developed world. However it is the structural and rapid change that accompanies this growth, rather than the growth itself, that is the source of the stock selection opportunity,” said Pines.

“China is a case in point – recently, rapidly changing expectations about the structure and resilience of its economy have depressed valuations. Some Chinese stocks have been hit harder than they deserve to have been. We are finding many stock picking opportunities in China, particularly among quality cyclical companies that are strong enough to weather the current challenging environment.”

The product is available with an annual management charge of 1%, and has a minimum investment limit of £1,000. The UCITS vehicle has been made available to discretionary managers, multi-manager fund selectors and wealth managers in the UK.

Hermes Fund Managers runs a number of strategies for its private clients, managing nearly £25bn in assets.


This article was first published on Investment Week

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