Prusik Investment Management is preparing to rebrand Heather Manners' $34m Asian Smaller Companies fund to reflect a revised flexibility to include large-caps, while also appointing a new co-manager.
From 1 August, the fund will be renamed the Prusik Asia Emerging Opportunities fund and analyst Anna Gallagher will become co-manager alongside Manners.
The fund will move to daily dealing and will be capped when it reaches $200m (£161m). It will be benchmark agnostic, aiming for an annualised return of 10% to 12%.
Additionally, Manners will be able to hold up to 25% of the portfolio in large-cap stocks, which she said will allow her to follow the companies she favours from the early stages of growth and into fully-fledged blue chips.
Prusik shifted its focus 18 months ago to invest primarily in countries with "demographically youthful" populations, in the expectation this will drive stronger GDP growth in those economies.
"You get the reverse of what happens when you have an ageing population, such as in China, Hong Kong and Singapore, where annual GDP growth tends to be around 3%," Manners said.
In contrast, Vietnam, India, Indonesia, Pakistan, the Philippines, Bangladesh and Sri Lanka are growing at double that rate and, combined, they only comprise around 14% of the MSCI Asia index, so most investors in Asia are not getting much exposure to these markets, she added.
But these countries have enormous populations - roughly 2.5 billion combined - and with this comes great potential for investors.
Some of the themes in the fund tapping into this are the shift from traditional to modern retail, the growth of local brands, and the growth of consumer credit and more sophisticated financial services.
India, for example, has less than 10% penetration of mortgages, so this could be a huge growth area in years to come, said Manners.
The fund has around 30% in Vietnam, where companies are fast-growing and cheaply valued but difficult to access due to taxes levied on foreign investors.
With liquidity at the forefront of investors' minds given Neil Woodford's recent problems with unlisted and small-cap holdings, Manners said it is something she is always thinking about.
"Liquidity is our middle name, it is in our DNA," she said. She pointed out the group has soft-closed all three of its funds at various points to protect liquidity, and she took cash to 80% during 2008 and
was able to sell holdings easily.
"Yes, we want to invest in smaller countries, yes we want to invest in smaller companies, but no we do not want to compromise underlying liquidity at all, and that is why our funds have been closed at tiny amounts compared to our peers.
"The Prusik Asia Emerging Opportunities fund will have a capacity of $200m. We could sell 90% of the fund within five days."