We are delighted to announce the launch of the Nedgroup Investments Global Emerging Markets Equity Fund - a fund that is designed to give investors targeted access to some of the fastest-growing economies and equity markets around the world.
The Nedgroup Investments Global Emerging Markets Fund will be managed by Best of Breed™ partner, NS Partners and is available immediately for investment in both a Rand denominated Feeder Fund and a Dollar denominated offshore Fund.
The Nedgroup Investments Global Emerging Markets (GEM) Equity Fund
The new fund is ideal for investors looking to diversify their global exposure and access the higher expected long-term returns historically provided by Emerging Market companies. The fund will invest in attractive businesses primarily through equity securities listed across all emerging market exchanges and select frontier markets. The performance objective is to consistently produce returns in excess of the MSCI Emerging Market Index over a full market cycle.
The Investment Manager: NS Partners
The Nedgroup Investments team has spent many years reviewing managers all over the world before selecting NS Partners as our Best of Breed™ partner for this fund. As a boutique, owner-managed business with a concentrated range of strategies, they are aligned to the success of investors into this fund and an appropriate selection within our Best of Breed™ philosophy. NS Partners have built a long-term, proven track record in emerging market equity investing since 1996, consistently applying their investment approach with a stable dedicated team.
The portfolio management team is comprised of experienced emerging market analysts, many of whom have been working together in the business for more than 20 years. The team follows a unique investment approach that combines bottom-up fundamental stock selection with a top-down macro and country allocation view. The incorporation of a country level assessment within the strategy makes NS Partners unique within their fund manager peers and has resulted in long-term outperformance.
Why emerging markets?
Over the years, the emerging market landscape has become bigger and more dynamic thanks to improved accessibility and increased integration of the financial markets. Today the MSCI Emerging Markets Index consists of 24 countries representing just over 10% of world market capitalisation, compared to just 10 countries representing less than 1% of world market capitalisation in 1988 when the index was launched. This evolution has significantly widened the emerging market investment universe for investors.
Earnings growth in emerging markets has accelerated sharply and the forecasted growth is expected to remain in double digits. Emerging markets remain a compelling investment opportunity in the coming years; and the prolonged underperformance of developed markets experienced over recent years has opened attractive entry points to exploit this opportunity. In addition, a shrinking of South Africa’s percentage in the emerging market universe means local investors should reassess their emerging market allocation, in pursuit of a well-diversified global portfolio.