John Cleary of Focus Capital has run the fund for four years but it was not available to retail investors.
G2AM created a Luxembourg-domiciled Ucits structure for the Generation Emerging Markets Fund and has been running it as an internal portfolio for the past six months, widening its circulation as of 1 July.
Cleary invests in around 12 country-specific and regional portfolios invested in either equities or bonds. With a bias to large, liquid strategies, the fund currently has 80% in equity portfolios, with China, Korea and Taiwan making up the three largest positions.
Sixten Eriksson, managing partner at G2AM, said the fund has 10% cash at the moment but this is being worked down. The group has not favoured bonds in recent months but over the past few weeks has redeployed some cash into fixed interest, a 10% holding in a local currency, emerging market debt portfolio, he said.
G2AM has taken a multi-asset and multi-manager approach to its offering with the aim of capturing upside market opportunities while reducing downside volatility. Back-tested quantitative research shows Generation Emerging Markets fund would have a volatility score of 16.20% versus 29.25% in the MSCI Emerging Markets index.
The fund, initially targeted at private banks, family offices and high net worth individuals, is dollar denominated but a sterling share class will soon be added. The fund’s C1 share class, with a minimum investment of $10,000, carries an annual charge of 1.50% plus a 10% performance fee.