GLOBAL - Mellon Global Investments has affirmed its commitment to emerging markets with an addition to its global funds range.
The new sub fund - Mellon Global Emerging Markets Portfolio - aims to achieve long term capital growth through investment primarily in companies located in, or conducting most of their business in, emerging markets. It may also invest in American and/or Global Depository Receipts and will be benchmarked against the MSCI Emerging Markets Free Index.
“With developing countries comprising 85% of the world’s population, 22% of the world’s stock market cap and 22% of the world’s income, the emerging markets are major supply centres for global business,” said Mellon.
“In China, low labour and material costs make it an attractive country for investment; India has long been praised for its skilled workforce. A raft of successful economic reforms, including sound fiscal and monetary policies, improved corporate governance and the privatisation of some state-owned enterprises, contribute to the investment appeal of the sector.”
The portfolio will be managed by value specialists The Boston Company Asset Management, a unit of Mellon. Boston has managed emerging market portfolios since 1995 and currently handles US$1.26bn in emerging markets portfolios.
Commenting on the addition, Jon Little, chief executive of Mellon Global Investments, said: “The Boston Company Asset Management have a successful history in managing funds concentrating on emerging markets.
“This is a valuable addition to the Mellon Global Funds range and again underlines the wealth of solutions Mellon Global Investments can offer clients.”
Dublin-domiciled Mellon Global Funds was set up in 2001, and now consists of 20 subfunds.
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