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Barings Launches Emerging Markets Fund

Wendy Spires

3 July 2011

Baring Asset Management has launched a new fund intended to achieve emerging market equity-like returns with less of the risk, over a long-term investment horizon.

The Baring Dynamic Emerging Markets Fund will invest in emerging market equities, bonds, currencies, commodities , derivatives, money market instruments and/or cash. With Percival Stanion, head of Barings’ multi-asset team, at the helm, the fund will employ an actively managed multi-asset strategy; it will be run along top-down lines while also taking a flexible approach to asset allocation, the firm said in a statement.

While the fund is intended to tap the favourable demographics, currency appreciation, high productivity and growing domestic demand of the emerging markets, the funds managers are also sanctioned to allocate away from emerging markets in order to curb volatility and to mitigate market wobbles by investing into other assets classes like developed market bonds, alternatives and cash.

Structured as a Luxembourg-domiciled open-ended investment company, the Baring Dynamic Emerging Markets Fund carries an annual management charge of 0.75 per cent.