Liontrust Launching Global Equity UCITS Fund With EM Twist

Jul 9 2015 | 2:24pm ET

Liontrust Asset Management will launch a Dublin-based global equity fund next week that carries a strong focus on emerging markets.

The Liontrust GF Global Strategic Equity fund will be launched on July 16, according to an interview in CitywireGlobal. It will be UCITS-compliant and have USD, sterling and euro share classes. 

Plans to launch the fund were first announced in April 2015, noting that the actual launch date would be subject to regulatory approvals. 

Lead manager on the new fund be Patrick Cadell, who joined Liontrust along with Kristof Bulkai and Hugo Rogers from F&C Asset Management. His team will seek to identify stocks, sectors and countries that are experiencing unpriced structural or fundamental changes, according to the article. 

The fund will have an emerging market tilt to it and be able to take long and short positions. It is exploring long opportunities in India, China and Indonesia, but is more cautious about Thailand, Brazil and South Africa. The current dislocation in the Chinese and Hong Kong markets is creating a number of attractive investment opportunities, noted Cadell. 

‘Emerging market equities are not a homogenous asset class and there has been a significant divergence between the underlying components of the index,” said Cadell in the article. “We expect this divergence in economic fundamentals and equity returns within the emerging market universe to continue.”

The fund will also exploit disruptions in particular sectors, such as the shift away from coal towards renewables and natural gas, or innovators within technology markets like smartphones. 

In general, the fund will seek structural changes at a country, sector or company level that could include the political, regulatory or technological changes that markets are particularly poor at pricing.

London-based Liontrust had assets under management of £4.5 billion as of March 31st, a 24% rise year over year, and has been pushing into the European market with new funds and the establishment of a Luxembourg office at the end of last year.

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