Investment Strategy : At least two-thirds of the Fund (excluding cash) will be invested in a concentrated range of shares of companies in the MSCI BRIC index. The Fund will typically hold fewer than 50 companies with no bias to any particular size of company or industry.
The Investment Manager believes the key reason for investing in the BRIC markets (Brazil, Russia, India and China) is their excellent long-term growth potential. Their advantages include a large share of the world’s natural resources, while relatively low wage levels give these economies a significant competitive edge. Furthermore, the size of the middle class in these countries is growing rapidly, fuelling strong consumer spending growth. The Investment Manager’s ‘on the ground’ research in these countries enables them to access attractive investment opportunities.
The Fund may also invest in other financial instruments and hold cash on deposit. Financial derivative instruments may be used to achieve the investment objective and to reduce risk or
manage the Fund more efficiently.
The Fund aims to provide capital growth in excess of the MSCI BRIC (Net TR) 10/40 index after fees have been deducted over a three to five year period, by investing in equity and equity related securities of Brazilian, Russian, Indian and Chinese companies.
The Fund is actively managed and invests at least two-thirds of its assets in a range of equity and equity related securities of Brazilian, Russian, Indian and Chinese companies.
The Fund may invest directly in China B-Shares and China HShares and may invest less than 20% of its assets (on a net basis) directly or indirectly through derivatives in China AShares through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.
The Fund may also invest up to one-third of its asset directly or indirectly in other securities (including other asset classes), countries, regions, industries or currencies, Investment Funds, warrants and Money Market Investments, and hold cash.
The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently.