JO Hambro targets China and India with fund launch

JO Hambro’s latest Global Emerging Markets fund will invest predominantly in China and India when it launches later this month.

The JOHCM Global Emerging Markets Opportunities fund, run by ex-Barings managers James Syme and Paul Wimborne, will focus on two of the emerging markets major economies despite a tough spell for both since the start of the year.

Syme said China and India are "forerunners" in the fund's soon to be launched portfolio.

"There will be a focus where markets and central banks can influence growth," said co-manager Wimborne. He said Indonesia and Malaysia, countries showing "efficient and effective growth", will also feature in the fund.

The fund will have around 50-60 holdings in total, out of a universe of 2500 stocks.

One of the key areas the duo are focusing on is Chinese banks. Syme said the sector was "one of the most unloved parts" of the market

"They have some bad debt, but not as bad as anticipated."

Underweight allocations include utilities, Chinese property, Korea, and Turkey, with the managers wary of a lack of growth opportunities.

The group has also capped the fund at $3bn.

The fund is the second emerging markets equities fund to be launched by JO Hambro in the past 14 months.

The $600m JOHCM Emerging Markets fund was launched in April last year and is managed by Emery Brewer and Dr Ivo Kovachev.