Schroders has launched a fund that will invest in Brazil, Russia, India and China. The Schroder ISF...
Schroders has launched a fund that will invest in Brazil, Russia, India and China.
The Schroder ISF Bric fund, will be managed by Allan Conway and Waj Hashmi and will invest in small to medium-sized companies that are rarely covered by other analysts, according to Rupert Rucker, product manager for emerging markets at Schroders.
The fund uses the MSCI EM BRIC index as its benchmark. There are around 30-60 stocks in the portfolio.
The Luxembourg-domiciled fund is available throughout Europe including the UK. The minimum investment is E1,000 (£680). Initial charge is 5.26%, from which intermediaries can take commission.
The annual management charge is 1.5%.
Rucker said: "Presently, the portfolio is overweight Russia and China, neutral Brazil and underweight India. Stocks in the top five include Pingan Insurance in China. As this market is relatively immature in the region, premiums are rising and policy sales are rising.
"In India, ICICI Bank is favoured because it is benefiting from strength in the domestic economy, with consumers borrowing more money as well as investing."
According to Rucker, around 20% of the portfolio weightings are decided from top-down country factors such as political and economic stability and 80% is determined by stock selection. The managers are assisted by a team of 27 analysts based in locations around the world.
Allan Conway, head of emerging market equities at Schroders, said: "Brazil, Russia, India and China represent 43% of the world's population, but it is only relatively recently that the conditions have been right to allow this huge number of people to start becoming economically active.
"Thanks to increasingly pro-business political climates, economic liberalisation, improved legal infrastructure and the opening of capital markets, they now have the potential to become major players in the global economy."
Bric fund from Schroders
Available throughout Europe including UK
Minimum investment is E1,000, AMC 1.5%, Initial Charge 5.26%
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