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Alquity unveils three new funds

Alquity Investment Management has launched three Luxembourg-domiciled funds, expanding its investment reach into Latin America, Asia and the Indian Subcontinent.
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The group said the Luxembourg domciled UCITs IV funds offer “attractive returns, sustainable investment and will transform lives”.

The Alquity Latin America Fund will focus on equities and fixed income securities in Mexico, Chile, Colombia and Peru.

Roberto Lampl, head of Latin American investment, said: “The fund has the freedom to invest in companies with a competitive advantage, like multi-Latina businesses competing with, and beating, global multi-nationals and who benefit from combining world class standards with a localized approach.

“We are focused on finding long-term sustainable value rather than just being obliged to hold large, value-destroying stocks in countries like Brazil just because they are part of a conventional index.”

The Alquity Asia Fund includes a 24% exposure to frontier markets like Vietnam and Myanmar.

“We are seeking out the next growth stories emerging out of the liberalisation of the South East Asia region,” said Mike Sell, head of Asian investments. “Environmental, social and governance criteria will be used as a screen to uncover under-researched companies with sustainable competitive advantages.”

The Alquity Indian Subcontinent Fund will also be run by Sell, and will focus primarily on New India and fast-growing private sector companies, with a remit that covers frontier markets including Pakistan and Sri Lanka.

Chief executive of Alquity Investment Management, Paul Robinson, said: “The launch of three new funds marks a step change in the global reach of Alquity’s investment model, building on the track record of our landmark Africa fund.”

Alquity announced it planned to launch the funds in December last year. At the time, Robinson said the company’s successful African business strategy was being sought after by potential investors in Latin America and Asia, who saw similar social and economic problems in their domestic markets.

As reported, there are three “pillars” to Alquity’s investment strategy. First, Alquity aims to produce attractive returns through investing in high opportunity frontier markets. Second, the fund manager will employ an environmental, social and governance screen over potential stocks. Third, Alquity donates 25% of its fee revenue to microfinance projects under its “transforming lives” programme.

Targeting “double digit” returns, all funds have a minimum investment level of $2,000, will charge an initial subscription fee of up to 5%, an annual management charge of up to 1.9% and a 15% performance fee. Advsier commission is set at 4%, with a 0.5% trail.

Part of the Bonhill Group.