BMO GAM launches global EM smaller companies fund
BMO Global Asset Management launched the BMO LGM global emerging markets smaller companies fund to complement its existing range of Asian, emerging and frontier markets funds.
The fund is managed by LGM Investments, BMO Global Asset Management’s specialist emerging markets manager. Irina Hunter is the lead portfolio manager with Claire Franklin being co-portfolio manager.
The BMO LGM global emerging markets smaller companies fund aims to deliver long-term capital growth by investing in smaller companies established in, or deriving a significant amount of their income and profit from, emerging markets. The fund may also invest a portion of its assets in frontier markets, in line with LGM Investments’ benchmark agnostic investment style.
Like all funds managed by LGM Investments, the new fund will have a long-term investment horizon seeking to invest in cash generative, high quality companies at reasonable prices. Quality companies are defined under four key criteria: sustainable business models; robust balance sheets; proven management teams; and a clear alignment of interest between majority and minority shareholders.
Commenting on the launch Thomas Vester, chief investment officer of LGM Investments, said: “We are very excited to launch this fund. The emerging markets smaller companies sector offers long-term investors a fantastic opportunity to find quality businesses that are not yet appreciated by the wider market. Our quality focused process thrives in this kind of environment where we aim to identify great companies that have the real potential to grow at high rates in the long term.”
Irina Hunter, lead portfolio manager, BMO LGM global emerging markets smaller companies fund, said: “Emerging markets smaller companies are one of the few places left where one can achieve a genuine information advantage. Simply speaking, the sector lacks research coverage and, as such, price discovery. As stock pickers, this gets us very excited and allows us to find fantastic businesses, achieving great things, which are simply not appreciated by the market…yet.”
The fund, domiciled in Ireland, is available to institutional and advised retail investors. The BMO LGM global emerging markets smaller companies fund is registered for sale in the UK, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain and Sweden.