RWC taps into developing economies with new EM fund

Frontier Markets AfricaRWC Partners is set to launch an emerging markets fund seeking to offer greater exposure to opportunities in the emerging and frontier market universe that are currently under-represented by current indices and funds.

Expected to go live on March 20, 2019, the fund will be managed by James Johnstone, who leads the emerging and frontier markets team alongside John Malloy. It will follow a strategy that has been in place since 2014, RWC said in a statement.

Speaking ahead of the launch, Johnstone said: “By investing in countries at an earlier stage of development versus large emerging markets – such as China, Brazil, India and Russia – we’re aiming to provide differentiated exposure to rapidly developing economies which also have low correlations to both developed markets and each other.”

The fund will invest in 50 to 70 positions with market capitalisations of at least $750 million (€660 million), or daily volumes of at least $2 million.

The fund will be structured as part of the RWC Funds Luxembourg-domiciled Sicav, the firm added in the statement.

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