Maple-Brown Abbott launches global EM fund

Oksana Patron

22 March 2023

Maple-Brown Abbott has launched an actively managed global emerging markets equity fund, which will be invested in companies listed across global emerging and frontier markets and managed by John Moorhead.

The new fund would be managed on a ‘benchmark unaware’ basis, providing exposure to a concentrated portfolio of companies most likely to benefit from cyclical and structural change and typically holds 30–40 stocks, the firm said.

The fund would also aim to outperform the MSCI Emerging Markets Net Index (AUD), after fees, over a five-year period.

John Moorhead, head of global emerging markets, said the core belief underlying the investment strategy for the new fund was “the need to focus on both structural and cyclical change as the driver of cash flow, valuations and, ultimately, longer-term share price returns”.

According to him, the Maple-Brown Abbott Global Emerging Markets Fund may be appropriate for investors who are seeking capital growth with an investment horizon of at least five years, a very high risk tolerance and are comfortable with the risks associated with investing in global emerging markets.

“In our view, a diversified investment portfolio benefits from an allocation to global emerging markets,” he added.

“Emerging market companies provide investors with a unique opportunity to access long-term trends including growing middle class consumption, evolving demographics and the energy transition.

“Given the wide range in companies, valuations and macroeconomic factors, we believe that active management (that is, active stock picking) is crucial when investing in global emerging markets.”