By Hannah Williford
Swiss-based asset manager Vontobel has introduced an emerging markets ex-China equity fund, expanding their reach in a market which has been a point of focus for the firm since 2021.
Staffed with 27 investment professionals and ESG analysts, the Vontobel Fund – mtx Emerging Markets Leaders ex-China strategy aims to focus investments on companies it sees as “industry leaders” in terms of profitability and position within their industry.
Vontobel sees the fund as an opportunity to meet client’s needs for emerging markets in Asia outside of the vast Chinese market.
Roger Merz, Vontobel head of mtx portfolio management, said: “China is the second largest economy in the world and it continues to play a crucial role in the evolution of the broader emerging market universe.
“However, as China’s economy has grown exponentially in recent years, its weighting relative to other emerging markets has also increased significantly. As such, some clients have made the decision to consider China as a standalone asset class, managing their exposure separately.”
Vontobel introduced two emerging markets bond funds in February of this year, the Emerging Markets Investment Grade and Asian Bond strategies. Co-portfolio manager for the new fund Thomas Schaffner emphasised the flexibility the solution aims to give to investors.
“Investors are increasingly looking at different ways to incorporate China into their portfolios and this new fund enables clients to take control of their own investment decisions and set targets for exposure to China equity within their overall strategic asset allocation framework,” he said.