Standard Life Investments (SLI) has launched a new Enhanced Diversified Global Emerging Markets Strategy (EDGEM).
The SICAV Fund is designed to generate GEM-like equity returns over an investment cycle with less than 70% of the volatility of the GEM index and hence a substantially higher risk-adjusted return.
The EDGEM portfolio draws upon the expertise of Standard Life Investments’ highly experienced GEM Equity and Multi-Asset teams to create a fusion of our stock selection and macro capabilities. Available to institutional investors, the strategy uses a wider breadth of return opportunities and diversification strategies compared with more traditional approaches.
David Cumming, Head of Equities for Standard life Investments says: “We have seen an increased demand for GEM equity in recent years and this is a very innovative approach for investing in emerging markets. Through EDGEM we can achieve diversification without compromising stock selection and we can look beyond both region and asset class for return opportunities. Our Focus on Change philosophy is embedded within EDGEM and the 11 strong Asia and GEM equities team will contribute non-consensus ideas, building on years of experience in successful, company focused stock selection.
“Along with the return potential from emerging markets, there also comes risk. We have a dedicated team of specialists who monitor and control risk across the EDGEM strategy, resulting in a very resilient and truly diverse portfolio. I believe that the combination of our stock picking expertise and the macro insight from our MAI team will prove a formidable proposition for investing in GEM”.
EDGEM will be run by a strong joint portfolio management team of Emerging Market equity and multi-asset investment managers. Members of the team include Ronnie Petrie Head of Emerging Markets, Scott Smith and Jason Hepner both Investment Directors for Multi Asset Investing.