Insynergy Investment Management has launched a fund that seeks to generate an income from current and former emerging market stocks.
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.
The fund, which launches 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.
Insynergy chief executive Spike Hughes says the product aims to deliver an annual income of 4.5 per cent of the value of its stocks compared with the IMA UK equity income sector’s 3.9 per cent.
Hughes says: “Equity income stocks in the emerging markets give investors the chance to invest in countries and companies that have economic winds at their back rather than in their face.”
Hargreaves Lansdown senior analyst Meera Patel says: “We are cautious about the number of funds that have been launched in this space in recent times.
“To be convinced, I would want to see a strong track record from the manager and assurances that the dividend payments are here to stay.”