US asset manager Alger is targeting the UK market with a concerted funds push.
The firm is launching US Dynamic Opportunities and Emerging Markets funds into the UK, and has established a London office. Subject to regulatory approval, both funds are expected to launch in May.
CEO Dan Chung told Wealth Manager: ‘The UK is an important base for us, and we are bringing both funds to our European clients, which are aimed at delivering growth with a lower volatility.’
Since inception in November 2009, its equivalent fund for US investors, the Dynamic Return Strategy delivered 8.74%, outperforming the S&P 500’s 7.46% rise.
'US equities are still underestimated by European investors,' Chung said. 'Valuations are not at all-time highs, because while the market has moved up to historical highs, valuations have only gone up just above average.'
The emerging market strategy is managed by Deborah Velez Medenica, former head of emerging market equities at PineBridge (AIG).
Its US equivalent has returned 1.74% since inception in December 2010, an MSCI EM Index rise of 0.98%. The fund focuses on unappreciated stocks, and plays the restructuring of state-owned enterprises and consumer spending.
'I think it's a very opportune time to be in the EM, which are cheap. They are trading at considerable discounts against developed markets, between 10% and 20% in some cases,' Chung explained. 'There are a lot of opportunities in EM to find these unappreciated stocks.'