Acadian launches EM Small-Cap Ucits

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Acadian Asset Management has launched its Emerging Markets Small-Cap Equity Ucits USD, a daily traded Ucits vehicle.

Domiciled in Dublin, the fund will use a bottom up stockpicking approach, as well as Acadian’s proprietary forecasting model for investing in emerging market equities.

Benchmarked to the MSCI Emerging Markets Small-Cap Index, the fund will target an active share of more than 80%, which means it expects to have significant holdings outside the benchmark. The fund is mandated to look beyond established emerging market themes, such as consumption trends.

Patrick McCafferty, senior vice president and portfolio manager at Acadian’s London affiliate, said that the fund would rely on the historical inefficiency in pricing of both emerging markets and small cap stocks.

“We believe that our broad experience in bottom up stock selection, combined with our systematic approach and focus on risk control, will enable us to find the mispricing opportunities that are most likely to deliver outperformance,” he said.

“Acadian’s universe of approximately 4,800 small cap emerging market stocks is significantly larger than the 800 stocks in the MSCI Emerging Markets Small Cap Index. The fund will therefore be able to access a very broad array of stocks, including many that we believe are under-followed and thus even more liable to mispricing. Acadian’s structured process has the tools to exploit a far broader universe than that of managers who take a more fundamental approach.”

“In addition to providing a broad opportunity set, emerging market small cap stocks provide diversification benefits, as they are typically more reliant on domestic markets. Unlike large cap stocks that derive most of their revenues from exports and are subject to the global economic cycle, emerging market small cap stocks offer greater exposure to each underlying country’s idiosyncratic investment stories.”



Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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