Guinness Flight's equity fund aims to tap emerging markets
GUINNESS Flight has launched an equity fund to target the world's emerging markets.
Managing director Dudley Howard said the fund would try to capture the fast-growing economies expected to grow at twice the rate of established markets over the next 10 years.
'Today's emerging markets are tomorrow's Japan's,' said Mr Howard.
Investors should have 10 per cent of their investments in emerging markets, he said.
The fund is aimed at embryonic markets such as China, Sri Lanka and Peru, as well as industrialising countries including Thailand and Portugal, and markets approaching maturity, such as Taiwan and Malaysia.
Hong Kong is not included because it is considered a fully developed market, although some H shares will be bought.
The minimum investment is $80,000, and during the promotion period, those who put in more than $400,000 will receive a one per cent discount on the front-end load.
Mr Howard said the company would use its experience in managing currency risk to help maximise returns on equity investments.
The weighting will be 11 per cent in emerging markets, 41 per cent in industrialising markets, and 48 per cent in those approaching maturity.
'The logic of investing in emerging markets is compelling,' said Mr Howard.
'The timing is right because most emerging markets fell in the first half of this year and have now started to recover.' He said the kind of rapid economic growth seen in China was also taking place in some other emerging markets.