Matthews Asia has launched a suite of Emerging Market Funds, designed to provide investors with the ability to customise their emerging market exposure.
Mirroring the firm’s strategies available to US investors, they are the Matthews Emerging Markets Equity Fund (ISIN LU2651608080), Emerging Markets ex China Equity Fund (ISIN LU2651608247), Emerging Markets Discovery Fund (ISIN LU2651608676). All three funds are categorised as Article 8 under SFDR.
Managed by Lead Portfolio Managers John Paul Lech and Alex Zarechnak, with support from co-managers Andrew Mattock and Peeyush Mittal, the Matthews Emerging Markets Equity Fund uses a fundamental, bottom-up investment approach to build a core, quality-growth all-cap portfolio of 30 to 70 companies. The investment team typically looks for companies that have higher growth metrics, as well as higher quality metrics, than the broader market with a focus on firms that can serve the growing needs of domestic consumers within their market.
The Matthews Emerging Markets ex China Equity Fund is a concentrated all-cap portfolio of 30 to 70 stocks that provides investors with the ability to separate China from their core emerging markets allocation, either to avoid exposure or have more control using a dedicated China strategy. The fund employs the same bottom-up stock-picking strategy as the Matthews Emerging Markets Fund and is also managed by the same lead portfolio managers with support from co-manager Peeyush Mittal.
The Matthews Emerging Markets Discovery Fund provides investors with the ability to complement their current emerging market allocation with a portfolio that invests in small companies that often have more innovative and entrepreneurial business models. The Fund invests in 40 to 80 small companies across the Emerging Markets, typically early in their lifecycle, holding them as they capitalize on structural growth trends in large addressable markets. The fund is managed by Lead Portfolio Manager Vivek Tanneeru with support from co-managers Jeremy Sutch and Alex Zarechnak.
Cooper Abbott, CEO of Matthews Asia, says: “In our discussions with institutions and wealth managers, a growing number are looking to build customised exposures to Emerging Markets and have greater control over a core allocation. Matthews’ launch of these Emerging Market Funds gives the power of choice to sophisticated investors, allowing us to deepen partnerships with clients in Europe and Asia and for them to leverage our firm’s capabilities to construct highly distinct, actively-managed portfolios.”
Neil Steedman, Head of International Distribution, says: “Emerging markets can offer investors the biggest potential for long-term growth over many other assets classes. With a combination of large populations, higher economic growth, rising wages and productivity, a shift toward sophisticated services and consumption and deepening capital markets, they will continue to create new and attractive investment opportunities for investors. We are pleased to offer our proven approach to stock-picking and portfolio construction to investors who seek more distinct emerging markets exposures.”