Aston Asset Management has launched a new mutual fund, the Aston/LMCG Emerging Markets Fund, which seeks to provide long-term capital appreciation by investing in emerging markets in Latin America, Eastern and Southern Europe, the Middle East, Africa and Asia.
Lee Munder Capital Group (LMCG) acts as sub-adviser to the fund.
Under normal market conditions, at least 80 per-cent of the fund’s portfolio will be invested in equity securities including depositary receipts representing companies listed in the MSCI Emerging Markets IMI Index. The fund will also invest in the securities of exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that track an emerging market index.
LMCG’s emerging markets investment philosophy is a bottom-up, quantitative approach. It seeks to exploit inefficiencies in the market by identifying stocks with attractive valuations that also have good growth prospects and high quality of earnings. By selecting stocks that rank well on a variety of metrics, LMCG aims to diversify its source of returns in different market environments.
"We are committed to selecting experienced, boutique investment managers with proven expertise in distinct areas of the market to help us bring new strategies to mutual fund investors," says Stuart D Bilton, chairman and chief executive officer of Aston. "Our experience working with LMCG has shown us their strong capabilities, and we believe this new fund will give investors a compelling alternative to the equity markets of developed countries."
"We look forward to expanding our relationship with Aston and giving investors an opportunity to access emerging markets that we think offer significant growth potential in the years ahead," says Kenneth L Swan, chief executive of LMCG. "Today emerging markets are more than the ‘BRICS’ (Brazil, Russia, India, China and South Africa); we see opportunities in many places including, Korea, Taiwan, Mexico, Malaysia, and Thailand."
