Reyl Emerging Markets fund tops $1bn AuM
The emerging markets equity fund run by Geneva-based Reyl Asset Management has experienced strong inflows over the last quarter, with assets under management topping $1bn, up from $151m in December 2011, supported primarily by institutional investors.
The fund, launched in 2009, has regularly outperformed the benchmark index, and on an annualised basis, its performance (18.7%) outstrips that of the MSCI Emerging Markets Total Return Net USD by 9.5% for this period.
Demand for emerging markets capacity has soared as global investors seek higher growth and the financial infrastructure and domestic investment activity transforms the risk profile of these opportunities. Additionally, capacity at the best known and consistently performing funds such as the Aberdeen Emerging markets Fund, has been constrained, with, for Aberdeen a new 2% upfront entry fee.
The Reyl fund, managed by Maxime Botti, Emmanuel Hauptmann and Thomas de Saint-Seine of Reyl Asset Management, is managed through a blend of three ‘bottom-up’ and alpha decorrelated strategies: a ‘defensive’ driver, identifying high-dividend securities issued by companies with non-cyclical revenues, a ‘value’ driver, picking stocks with solid returns and attractive cash flows, and a GARP/Momentum driver, picking companies with strong growth potential and positive momentum.
“These three strategies are systematically applied to the fund in a broad and fragmented universe of 3,500 stocks; they capture market inefficiencies and convert them into a stock-picking effect,” commented de Saint-Seine, who is also CEO of Reyl AM.
“The hidden gems in a very broad stock universe are generally ignored by the majority of investors, who tend to replicate the major indices, such as the MSCI Emerging Markets. Our models do just the opposite and aim to exploit these opportunities,” added Hauptman.
“Our product also offers broad diversification with hundreds of securities in the portfolio, as well as excellent underlying liquidity. This key aspect for us is frequently ignored by other managers who have become too big in the market,” explained Botti.
Reyl Asset Management, which has just opened an office in London, has more than CHF2.5bn under management through a range of products which generate strong alpha returns. The firm is regulated as an Investment funds manager by the FINMA (Swiss Financial Market Supervisory Authority)