UK-based Hermes Fund Managers has launched the Emerging Asia UCITS fund under the management of Jonathan Pines.
Hermes, a roughly £25 billion money manager, said the Asia ex-Japan fund will focus on China, Korea, Taiwan and India and be available to discretionary managers, multi-manager fund selectors and wealth managers in the UK.
Pines, part of the firm's six-person emerging markets team, has led the contrarian, value-biased, high conviction Emerging Asia strategy since its inception in December 2009, during which period it has returned an annualized 15%. Over the past year, the strategy has returned 31%, beating its benchmark—the MSCI Asia ex-Japan Index—by 11%.
Said Pines, in a statement: “Growth in the Emerging Asia region continues to outpace that of the developed world. However it is the structural and rapid change that accompanies this growth, rather than the growth itself that is the source of the stock selection opportunity. China is a case in point–recently, rapidly changing expectations about the structure and resilience of its economy have depressed valuations. Some Chinese stocks have been hit harder than they deserve to have been. We are finding many stock-picking opportunities in China, particularly among quality cyclical companies that are strong enough to weather the current challenging environment.”
The fund charges a 1% management fee and requires a minimum investment of £1,000.