Schroders has opened the Schroder Emerging Markets Value fund to the UK after first launching in 2020 as part of the SISF range.
The fund invests in holdings the team sees as “sufficiently undervalued”, currently made of 41 companies across 17 countries including China, Mexico, Nigeria and Brazil. In the past three years, it gained 11.8% while its peer group made an average loss of 16.7%.
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Vera German, manager of the strategy, said: “Over the past 20 years, value investing has proven itself to be an extremely strong returning style in emerging markets. Following demand from our UK-based clients to access this strategy, we are delighted to be announcing the launch of an onshore vehicle, which will provide UK investors with an opportunity to access a highly successful platform.
“What really differentiates our strategy from most other investors approaching emerging markets is that, whereas most of our peers are top-down macro driven, trying to get the country macro right and then doing the stock picking in those countries, we are bottom-up investors going first to where value has been identified and building our portfolios one stock at a time.”
Measured against the MSCI Emerging Markets benchmark, the fund delivered a 16.7% per annum relative return.
German has spent the past five years at Schroders, first as an analyst before becoming fund manager in September 2020 with the Emerging Market fund. Fund manager Juan Torres has spent over seven years with Schroders, also becoming fund manager with the Emerging Market fund.
“Vera and I have more than a combined 30 years of investment experience and having both grown up in emerging markets, we are able to bring an authentic bottom-up stock picking approach that has so far seen us deliver impressive performance,” Torres said.
“We believe that our flexible all-cap approach, in comparison to a number of peers that have a structural large-cap bias, has allowed us to deliver a concentrated high conviction portfolio that, first and foremost, offers clients exposure to unrivalled value opportunities.”
