The CC RWC Global Emerging Markets Fund (the Fund) provides Australian investors with access to RWC Partners (RWC) emerging and frontier markets strategy, which is one of the best performing strategies of its kind. Since inception (August 2012) in AUD, the underlying strategy has returned 14.43% pa (after fees)*, versus the index return (MSCI Emerging Markets Index Net) of 9.56% pa.
The strategy is managed by emerging market veteran portfolio manager John Malloy and co-portfolio manager Thomas Allraum. Malloy, Allraum and their 19-strong investment team currently manages $A8.21 billion on behalf of its clients and brings together the economic and cultural perspectives of 13 nationalities, speaks 16 languages and draws on business experience gained from having worked together around the world for over twenty years.
This is a first time ‘recommended’ rating by Zenith Investment Partners for the Fund. In its report, Zenith notes its high regard for RWC’s investment team, viewing its depth and experience positively, as well as viewing its solid long-term track record positively, under the current investment process.
The strategy invests in emerging markets and may hold up to 20% allocation to frontier markets whilst also providing daily liquidity. A top-down macroeconomic and thematic overlay is used to build conviction on well-researched bottom-up investment ideas, resulting in an index agnostic approach.
Channel Investment Management Limited (a subsidiary of Channel Capital) is the Responsible Entity of the Fund, with Channel Capital providing investment operations, client services and distribution and marketing for the Fund from its institutional-grade incubation platform.
The partnership was initiated by the investment management services firm looking to meet the growing demand by Australian investors for a differentiated, benchmark agnostic emerging and frontier market allocation, and one that could demonstrate significant value to investor portfolios. For RWC Partners, it signifies further commitment to the region, as it has a strong institutional investor base which is now broadening, and allows it to remain focused on alpha generation.
Channel Capital’s Managing Director, Glen Holding said “We are pleased to be partnering with a high quality firm such as RWC Partners, offering our clients access to a globally-renowned emerging and frontier markets manager.”
John Malloy, Portfolio Manager, RWC Emerging Markets, said: “We believe the fundamental dynamics of emerging markets are now well positioned for strong performance. After a year of market consolidation in 2018 following two strong years in 2016 and 2017, emerging market valuations are attractive, growth is robust and currencies are competitive. Despite geopolitical noise, global economic growth remains supportive as does potential moderation in US dollar strength.
Exciting themes we are currently looking to exploit across emerging markets include technology disruption, investment in infrastructure, and financial inclusion, which together comprise over a third of our portfolio at this time. Our commitment to finding ‘best ideas’ irrespective of the benchmark and supported by extensive on-the-ground research, provides investors with a diversified but highly differentiated exposure to many of the fastest growing economies in the world.”
The CC RWC Global Emerging Markets Fund (ARSN 630 341 249) is an Australian domiciled unit trust and provides investment exposure to global emerging and frontier markets with the objective of providing long-term capital appreciation. It may suit investors looking for concentrated exposure to stocks in emerging and frontier markets with the potential for growth or those looking to diversify their portfolio away from domestic or developed markets.
The Fund is open for investment and it has received a ‘recommended’ rating by Zenith Investment Partners.
This is general information only and is not intended to provide advice to any particular investor, nor take into account an individual’s investment objectives, circumstances or needs. The value of an investment can rise and fall and past performance is not indicative of future performance. Decisions to acquire or continue to hold units in the Fund should only be made after considering the information contained in a current Product Disclosure Statement (PDS). Applications to invest will only be accepted if made on a valid application form. For further information and before investing, please read the PDS which is available upon request from clientservices@channelcapital.com.au or visit www.channelcapital.com.au.
CC RWC Global Emerging Markets Fund ARSN 630 341 249 (the Fund). Responsible Entity: Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (Channel). The Fund invests into Class F Shares in the RWC Global Emerging Markets Fund (Underlying Fund). The Investment Manager of the Underlying Fund is RWC Asset Advisors (US) LLC (RWC Fund Investment Manager).
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 26 March 2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines
“Strategy” is defined as the investment guidelines utilised by John Malloy in managing the Everest Capital Global Emerging Markets Equity Fund LP (the “Everest Fund”), Share Class A1 for the period 01 August 2012 – 28 February 2015 and in managing the RWC Emerging Markets Equity Master Fund Ltd. (the “RWC Fund”), Share Class C for the period starting 01 June 2015 to date. The Everest Fund ceased trading and the RWC Fund had not commenced trading during the period from 01 March 2015 to 31 May 2015.
Discrete monthly returns are shown in AUD, are net of all fees and expenses (including a 1% management fee that was charged to Share Class A1 of the Everest Fund and 0.75% management fee charged to Share Class C of the RWC Fund, reflect the reinvestment of income and may be unaudited.) The management fee, and the effect that compounding fees has over time, will reduce gross returns. An investor's actual performance will differ from the performance information due to, among other factors, actual fees and expenses incurred as well as capital contributions and withdrawals/redemptions.
The source of the performance up to 28th February 2015 is data provided to Everest Capital LLC (“Everest”) by Citco (Canada) Inc. in its capacity as sub-administrator to the Everest Fund, which Everest has provided under licence to RWC. The source of performance from 01 June 2015 is RWC. The index shown is the MSCI Emerging Markets Index Net, source: MSCI. Market index information shown within this document is included to show relative market performance for the periods indicated and not as standards of comparison. Such broadly based indices are unmanaged and differ in numerous respects from the portfolio composition of RWC Funds. While performance information contained herein was compiled by data furnished by Everest which Everest believes to be accurate, Everest makes no representations or warranties, express or implied, and shall have no responsibility regarding the performance information contained herein.
For the RWC Global Emerging Markets Fund, performance shown in AUD is for the B USD share class which carries an AMC of 0.90%, since its inception on 15 December 2015 to 28 February 2019. Total Fund returns are calculated on a NAV-NAV basis net income reinvested and are shown net of all fees.
Past performance is not a guide to future results. The prices of investments and income from them may fall as well as rise and an investor’s investment is subject to potential loss, in whole or in part.
