The company says investing is a long-term decision and short-term volatility is to be expected in emerging markets.
It says that it launched the fund as result of demand from IFAs for a multi-manager emerging markets fund and has not been put off by recent falls in equities.
Skandia says a fund of funds is the best way to access emerging markets.
It considers that trying to asset-allocate geographically between emerging markets is difficult for IFAs because if the adviser gets it wrong, the decision could cost clients in terms of performance.
The global emerging markets equity fund aims for growth by investing in five retail funds and one segregated mandate – Lazard emerging markets, Schroder global emerging markets, Hamon Asian market leaders, Gartmore Latin America, Resolution International emerging Europe and a First State Pacific mandate run by Angus Tulloch.
The funds were selected on the basis of research from Skandia’s dedicated team of emerging markets analysts. It looks at UK-domiciled emerging market funds and those domiciled overseas.
Skandia says it first identified the managers it wanted for the portfolio and then considered the best way to access them.
The company says it is happy to use existing funds but as Angus Tulloch already runs a segregated mandate for its other funds, it seemed sensible to access his skills this way.
Skandia Investment Management fund manager Ryan Hughes says: “With every fund, we look to have the best structure possible. Because of Skandia’s size we can invest through existing funds or segregated mandates.
“We have a large research team and they have decided that these are the best managers to have together in one fund.”