Schroders has launched a fund, which will invest in Brazil, Russia, India and China.
The fund uses the MSCI EM BRIC Index as its benchmark. There are around 30-60 stocks in the portfolio. It is Luxembourg domiciled and is available throughout Europe including the UK. The minimum investment is E1,000 (£). Initial charge is 5.26% which intermediaries can take commission from.
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 the 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 to become 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.
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