Emerging Markets

UK's Standard Life Rolls Out Global Emerging Markets Income Fund

Natasha Taghavi Reporter 19 December 2012

UK's Standard Life Rolls Out Global Emerging Markets Income Fund

UK-headquartered Standard life Investments has launched a global emerging markets income fund, aimed at retail and institutional investors.

As emerging markets appear to be one of the fastest growing parts of the world, accounting for over 50 per cent of GDP globally, investor opportunity and capital gain seem probable, as does a “sustainable income with the added potential for premium dividend growth,” the firm said.

“This is the right time to invest for income and there are excellent opportunities in emerging regions where we see strong dividend growth and companies are establishing themselves as global winners,” said Jacqueline Lowe, head of UK wholesale at the firm.

“The GEM income fund will be driven by stock selection and at Standard Life Investments we have a nine-strong, highly-experienced emerging markets team who take full advantage of our 'Focus on Change' investment philosophy and our robust and repeatable investment process,” she said.

The GEM income fund is the latest in a number of income funds launched by Standard Life Investments, and will be managed by Mark Vincent.

Vincent will invest in a portfolio of around 60-100 emerging market stocks with the aim of delivering a premium and sustainable level of income, targeting a yield of at least 115 per cent of the MSCI emerging markets index, the firm said in a statement. (The index is yielding 2.8 per cent compared to 2.3 per cent for the S&P 500 and 2.5 per cent for the MSCI Japan.)

The team also expect to see capital appreciation, given the attractive level of growth within the region.

In other recent developments across the firm, last month Standard Life opened an office in the Dubai International Financial Centre, offering products to UAE-based financial intermediaries.

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