Smith & Williamson Investment Management, part of UK-based accountancy and private bank group Smith & Williamson, has launched an emerging market value fund employing its
proprietary “30/30/30” investment strategy.
The Smith & Williamson Emerging Markets Value Fund, which may also invest in developed markets, selects stocks that are at least 30% below their highest price of the past 18 months and have a price/earnings ratio at least 30% lower than its relevant market index. Stocks must also have a dividend yield at least 30% above its relevant market index.
The fund is managed by Richard McGrath, who is based at AGF in Dublin. AGF is a minority shareholder in Smith & Williamson Holdings.
The fund seeks to achieve long-term capital growth together with some income. It will invest in 50 to 90 stocks, each with a market capitalisation of at least $500 million (€365 billion).
The investment philosophy is based on the assertion that cheap valuations are the major determinant of stock market performance across emerging markets in the long-term, and that investing in undervalued companies with a strong franchise should deliver the best returns.
The firm has £14.5 billion (€17.8 billion) of assets under management.
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