- Truly active, high-conviction, stock-driven portfolio managed by Martin Currie
- Fully integrated ESG approach
- Experienced team, with average 20 years’ experience, managing almost $2bn AuM
Legg Mason Inc, one of the world’s largest active asset management firms with $754 billion AuM, is launching a Dublin-based UCITS version of the Legg Mason IF Martin Currie Emerging Markets Fund.
The strategy, which launched in 2015 and is currently available to UK investors via Legg Mason’s ICVC onshore offering, is managed by Kim Catechis, Head of Global Emerging Markets at Legg Mason affiliate Martin Currie.
The strategy aims to deliver long-term outperformance by leveraging a proven investment process based on fundamental research and bottom-up stock-picking. The fund’s objective is to deliver long-term capital growth by investing in sustainable companies from emerging market countries. ESG analysis is firmly embedded within the process to help understand companies and make more informed decisions. It allows the team to highlight potential risks and opportunities, and identify areas on which to engage with management, ultimately leading to higher conviction.
Martin Currie currently have A+ ratings in three categories from PRI, having been signatories since 2009. Demonstrating their commitment to company engagement, over the last year, the Emerging Markets team underwent 43 engagements and voted against the company’s management on at least one resolution 27 times in total.
The high-conviction portfolio aims to hold between 40-60 stocks, with a diversified country allocation and a high active share. The gross-performance of the Global Emerging Markets Representative Account over the last 12 months was 25.5% compared to the MSCI Emerging Markets index of 16.3%.
The most prominent theme in the portfolio currently is within technology, which is reflecting the importance of this sector in the emerging markets. One of the largest holdings is Chinese e-commerce player Alibaba, which has benefitted from dramatic online sales growth, greater penetration in rural China and the increase in the number of paying customers for its cloud business. “From a governance perspective, the company has demonstrated an increasing willingness to improve disclosure which, of course, we welcome”, says Catechis.
Commenting on the launch of the UCITS fund, he adds:
“Emerging market companies are already dominant in many industries, and are challenging for dominance in many more. Banking, capital equipment and energy are just some of the areas that will soon be led by the developing world. The challenge for investors is to translate the developing world’s competitive advantage into real, sustainable returns – we think our strategy can offer the solution.”
Alexander Barry, Head of UK Sales at Legg Mason, says:
“Emerging Markets are very much on the agenda of our clients and we are pleased that we are in a position where we can provide our clients with vehicle choice. In light of Brexit, some clients prefer the on-shore ICVC funds whilst some others would prefer a Dublin-based fund. Our affiliate Martin Currie offers a sound investment process and over 20 years’ experience in emerging markets investments. Global Emerging Markets companies don’t necessarily behave like their developed-world counterparts and often face wildly different challenges and opportunities. To navigate this environment safely, investment managers need specialist skills, a thorough understanding of the individual companies and their risks, and perhaps most importantly, experience.”
|Fund name||Legg Mason Martin Currie Global Emerging Markets Fund|
|Fund manager||Kim Catechis|
|ISIN||IE00BF5LJ272 (A share class, Acc, USD)
|Anual management fee||1,5%|
|Minimum investment||GBP 1,000
 As of 31 October 2017
 As of 30 September 2017
 Source: Legg Mason as at 31 October 2017. All data presented is the Martin Currie Global Emerging Markets representative account. The figures provided includes the re-investment of dividends. MSCI Emerging Markets index used as benchmark. Since manager tenure start date is 1 October 2010. There may be differences between the representative account and the fund including differences in the amount of assets under management, cash flows, fees and expenses, and applicable regulatory requirements, including investment parameters and investment and borrowing restrictions. The past performance and allocations of the representative account are not indicative of the fund for the future.