First State mulls GEM Leaders sector shift to boost capacity

First State is considering moving Jonathan Asante's £4bn GEM Leaders fund out of the IMA Global Emerging Markets sector in order to combat capacity issues, Investment Week understands.

The group is seeking to broaden Asante’s investment universe, giving the manager greater flexibility to invest in off-benchmark stocks. According to sources, Asante wants to increase his exposure to emerging market shares listed in developed markets, in the view the current rules for the IMA Global Emerging Markets sector are too restrictive. To be a member of the sector, funds are required to invest 80% or more of their assets in emerging market equities within the MSCI Emerging Markets index, while a maximum of 20% can be invested in EM stocks listed in developed economies. In re...