The Fund enables wholesale investors to get exposure to emerging market companies with high-quality and growing dividend streams. The focus on dividends is intended to dampen some of the volatility associated with emerging market stock investing.
"We believe that Somerset Capital's Emerging Markets Dividend Growth strategy offers something new and differentiated," said Dennis Mothoneos, managing director of Clearway Capital Solutions - a company that assists Somerset Capital in growing its business in Australia and New Zealand.
"This can be seen in the stock names, industry sector weights and regional exposures held in the portfolio compared to other core emerging market strategies."
The fund manager has also demonstrated their ability to produce steady returns in volatile markets over time, he said.
The fund is managed by Edward Lam. According to the fund manager, Brazil companies are legally obliged to pay out over 20 per cent of their net profit in dividends. In addition, China, Taiwan and other Asian countries have always had a strong culture of paying dividends.
The fund's top holdings are in South Korean Equities, following by Brazilian, Chinese, Taiwanese and Indian equities. It has easily outperformed its peers over the past 12 months, as measured by the Investment Management Association Global Emerging Markets Index.
SCM is a specialist global emerging markets fund management firm, majority-owned by its founders and investment team, Jacob Rees-Mogg, Edward Robertson and Dominic Johnson.
They manage long only, bottom-up, concentrated portfolios for government pension funds, foundations and endowments.
