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Hermes rolls out emerging Asia fund for top-performer Pines
by Sarah Miloudi on Nov 01, 2012 at 10:46
Hermes Fund Managers has launched the Emerging Asia ucits fund for manager Jonathan Pines.
The fund house, which is responsible for nearly £25 billion in assets, rolled the vehicle out today to discretionary wealth managers and multi-managers in the UK.
The vehicle will invest across Asia, but will have a focus on China, Korea, Taiwan and India.
Pines, who has led Hermes' contrarian emerging asia strategy since its inception in 2009, will not allocate to Japan.
Pines said that while growth in the developed world has stalled, the picture is vastly different in emerging Asia, earmarking Hermes' new fund as a compelling offering for investors.
'Growth in the emerging Asia region continues to outpace that of the developed world. However it is the structural and rapid change that accompanies this growth, rather than the growth itself, that is the source of the stock selection opportunity,' Pines explained.
He added: 'China is a case in point – recently, rapidly changing expectations about the structure and resilience of its economy have depressed valuations. Some Chinese stocks have been hit harder than they deserve to have been. We are finding many stock picking opportunities in China, particularly among quality cyclical companies that are strong enough to weather the current challenging environment.'
Since its inception, Pines' emerging Asia strategy has returned 15% annualised, beating its benchmark by 10%. In the past year the strategy has returned 31%, outstripping its benchmark by 11%.
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