Octopus EM fund tilts towards Asia

17 November 2011 | By Joanne Ellul

Octopus Investments has introduced an emerging market equity multi-manager fund with a bias towards Asia.

The fund, which launched last week, has emerging market Asia regional/country funds at 30 per cent, its second-biggest position after global emerging markets funds at 50 per cent of the portfolio.

Of the remaining 20 per cent, 10 per cent is invested in Latin America funds and 10 per cent in emerging market Europe and Middle East and Africa funds.

The fund was launched alongside the Octopus global strategies fund, a global absolute return vehicle. Both funds will be run by Bish Limbu and supported by the rest of the multi-manager team.

Octopus Investments head of multi-manager and chief investment officer Lothar Mentel says: “We are interested in South-east Asia, because it is likely to have better growth potential at the moment than Eastern Europe and South America. Eastern Europe is too tied to Europe and will suffer under European recession.

South America has benefited from the commodities’ boom but we do not see that there is enough substance in its own industrial production to continue with high growth once the commodities’ cycle nears an end.”

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