Hexam Capital has announced the launch of the UK-domiciled Ignis Hexam Global Emerging Markets Fund, an onshore fund that will mirror the GBP71m Dublin-domiciled Ignis International Hex
Hexam Capital has announced the launch of the UK-domiciled Ignis Hexam Global Emerging Markets Fund, an onshore fund that will mirror the GBP71m Dublin-domiciled Ignis International Hexam Global Emerging Markets Fund.
It aims to make the fund more widely available on fund platforms and thus more accessible to UK investors.
Lead-managed by Bryan Collings (pictured), the fund will aim to achieve long-term capital growth through a concentrated portfolio of approximately 30 to 50 stocks and is not constrained by index weightings. The fund will take active sector and country positions from a broad range of stocks accessing the considerable long-term potential of emerging markets.
Mirroring its offshore counterpart, the onshore fund will initially adopt high conviction overweight positions towards Brazil, China and Russia. The fund has also taken advantage of depressed commodity stocks and built a material active position in select themes.
Currently, the Hexam fund only has exposure to seven of the 23 mainstream emerging markets, illustrating the team’s concentration on best ideas in the portfolio construction process.
"Emerging markets have the kind of solid fundamentals and investment opportunities that the developed world can only dream about,’ Collings says. ‘We firmly believe that many investors are taking an unintended risk by not having sufficient exposure in their portfolios, especially given our concerns about the UK economy and the dismal long-term outlook for domestic savings yields.
‘Emerging markets will deliver significant and sustainable growth over the coming decades and at current levels, we believe this is an exceptional medium-term buying opportunity and the perfect time to make the fund more accessible to UK investors."
Hexam was launched in July 2006 as a 50/50 joint venture with Ignis Asset Management.