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...
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