Lam uses EM dividends as defensive play

Natalie Kenway
clock

The Somerset Emerging Dividend Growth fund was launched last year to offer investors a defensive play following a bull run in the emerging regions.

Investors’ appetite for income vehicles played a part in the decision to launch the vehicle, but Edward Lam, lead manager and head of research at Somerset Capital, said the defensive characteristics of yield-producing stocks were the main attraction. Lam added there has been a lot of interest in the £15m vehicle, but this has yet to be reflected in the fund size. “The total AUM in dividend-focused emerging markets product are about $100m to $200m, whereas in UK-focused product it is $10bn,” he said. Lam pointed out this is disproportionate to the number of stocks producing dividends i...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

Client demand into region rising

Hugh Gimber
clock 26 March 2024 • 4 min read
Four Graphs explaining India

Four Graphs explaining India

Four experts write

Investment Week
clock 12 February 2024 • 4 min read
JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

Early adaption is key

Omar Negyal
clock 11 January 2024 • 2 min read
Trustpilot