Insynergy Investment Management has unveiled a fund which seeks to generate an income from current and former emerging market stocks.
The last 12 months has seen a wave of emerging market equity income launches as investors look to earn an income outside the currently stagnant developed world, particularly denominated in rising emerging market currencies.
The Insynergy New World Equity Income Fund will be housed in Dublin, regulated under the European Union’s Ucits III directive and managed by Kleinwort Benson Investors.
It will invest in stocks which pay a dividend to investors and are housed in emerging markets or former developing economies such as Singapore and Hong Kong.
Spike Hughes, the chief executive of Insynergy, says the product will offer retail and discretionary investors with an alternative to British equity funds and aims to deliver an annual income of 4.5 per cent of the value of its stocks, compared to the IMA UK equity income sector’s 3.9 per cent.
“By investing in equity income stocks in the emerging markets, investors have the chance to invest in countries and companies that have economic winds at their back, rather than in their face,” he comments.
The fund, which is to be launched in early June, will be invested in a “balanced portfolio” of about 100 equity holdings from Asia, Latin America, Eastern Europe, Africa and the Middle East. It will not hold bonds or derivatives.