Old Mutual Wealth is launching the Aubrey Capital Management’s Global Emerging Markets Opportunities Fund (‘GEM’) on its UK platform on the 10th November 2016.
Andrew Dalrymple, Aubrey founder and Manager of the £38 million Fund said,
“Aubrey Capital Management has a long term relationship with Old Mutual Wealth. Making our fund available to advisers via the Old Mutual Wealth platform further cements our partnership.”
The Aubrey Global Emerging Markets Opportunities Fund aims to capture the long-term growth opportunities which present themselves as the vast populations of Asia, Africa and Latin America strive to improve their lives and consume the products and services which we in the developed world take for granted.
Aubrey believes the long term potential in these high-growth markets has not diminished, and indeed will play out over many years to come.
“We are finding more ideas than we have scope to include in the portfolio, and are unreservedly bullish about the prospects for the Fund… the reality is that economic growth in most areas exceeds the developed world by a large margin. Wealth accumulation is powerful, and consequently private consumption continues to expand,” said Andrew Dalrymple.
GEM investment opportunities
The aspirations of more than five billion potential customers in the emerging world are similar to those in the developing world: better food, housing, transport, healthcare, education, entertainment, and lifestyle: The Fund focuses on rapidly growing sectors in countries with a stable political and economic backdrop which supports income growth.
Each sector, country and region has its own investment dynamic: We identify the strongest growth areas. For example, in India we focus on consumer staples, the financial sector and basic transport. In wealthier China, our preferences are for the rapidly expanding e-commerce sector, travel and education.
Emerging markets do have big, well-managed companies: We look for highly cash generative local champions with strong balance sheets which we expect to achieve short term earnings growth of above 15% per annum. These are extremely high quality companies with a median market cap of around $6bn.
Avoiding hotspots: We only invest in countries with a business friendly environment, a growing economy and rising household incomes. The feel good factor is important for our companies, so we have limited exposure to areas where these factors are absent.
Fund Performance
Since inception March 2012, the Aubrey Global Emerging Markets strategy has outperformed the MSCI Daily TR Net Emerging Markets (USD) by more than 61%. The strategy has captured most of the upside market growth and only half the downside.
Old Mutual Wealth Platform
The Aubrey Global Emerging Markets Opportunities Fund will be available through the following products on a Charge Basis 3 offering: Collective Retirement Account, Collective Investment Bond, Individual Savings Account and Collective Investment Account.
Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
It has an adviser and customer offering spanning:
- Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
- Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
- Asset management solutions delivered by Old Mutual Global Investors
- Discretionary investment management delivered by Quilter Cheviot.
Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).
This document has been issued by Aubrey Capital Management Limited which is authorised and regulated in the UK by the Financial Conduct Authority. You should be aware that the regulatory regime applicable in the UK may well be different in your home jurisdiction. This document has been prepared solely for information purposes and is not a solicitation, or an offer to buy or sell any security. The information on which the document is based has been obtained from sources that we believe to be reliable, and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to their accuracy. All expressions of opinion are subject to change without notice.Aubrey Capital Management Limited accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this document or any part of its contents. The use of this document should not be regarded as a substitute for the exercise by the recipient of his or her own judgment.
Please note that the prices of shares and the income from them can fall as well as rise and you may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. Past performance is not a guide to future returns and may not be repeated.
This press release is specifically provided for use by media representatives in the UK. The views expressed are those of the fund manager at the time of writing, and may have since changed.