The UK headquartered investment firm Alquity has launched three new funds aimed at developing economies.

The UK headquartered investment firm Alquity has launched three new funds aimed at developing economies.

Part of its "Virtuous Circle" investment model, the new funds will invest in Latin America, Asia and the Indian Subcontinent. All three funds will launch on 2 April.

In January this year Alquity hired emerging market experts Mike Sell and Roberto Lampl as part of plans to beef up its overseas offering. Sell joined from F&C Investments, where he was senior fund manager in the emerging markets equities team. Meanwhile Lampl was ex-emerging markets chief executive at Barings.

The Alquity Latin America Fund - headed up by Lampl - is eyeing up equities and fixed income opportunities in Mexico, Chile, Colombia and Peru. Interestingly the company is avoiding Brazil despite the country’s Sao Paulo based benchmark Bovespa index being on the rise throughout March.

“We are focused on finding long-term sustainable value rather than being obliged to hold large, value-destroying stocks in countries like Brazil just because they are part of a conventional index,” said Lampl, fund manager and head of Latin American investments at Alquity.

The Asia fund meanwhile includes a 24 per cent exposure to frontier markets like Vietnam and Myanmar. “We are seeking out the next growth stories emerging out of the liberalisation of the SE Asia region. Environmental, social and governance criteria will be used as a screen to uncover under-researched companies with sustainable competitive advantages,” said Mike Sell, head of Asian investments.

Sell also heads up the Indian Subcontinent Fund, searching out fast-growing private sector companies not only in India but Pakistan and Sri Lanka too.

“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,” Paul Robinson, chief executive said. “We have created a team of top class fund managers to expand this success into Latin America, Asia and the Indian subcontinent.”