Paris-based asset manager TOBAM has launched a Pacific equity fund to take advantage of the investment opportunities away from the dominant sectors and countries in the region.
TOBAM president Yves Choueifaty says: “Foreign investors look to markets such as Australia, New Zealand, Singapore and Hong Kong as a source of diversification.
“However, the market-cap weighted index in the region is strongly biased – with hefty concentrations in a small number of sectors. By applying the anti-benchmark method to this investment universe, TOBAM offers clients exposure that is both diversifying and diversified.”
The Anti-Benchmark Pacific ex-Japan equity fund has been launched with seed funding of £12m from Seven Investment Management (7IM) and will aim to outperform the MSCI Pacific ex-Japan equity cap-weighted benchmark by 4 to 6 per cent on an annual basis.
7IM marketing director Justin Urquhart Stewart says: “The “Anti-Benchmark” concept seeks to maximise the diversification when weighting stocks in a fund and so reduces volatility and by doing so captures more fully the equity risk premium.”
The fund is not currently available directly to the retail market but can be accessed through 7IM model portfolios.