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Pacific Asset Management introduces EM income fund

Pacific Asset Management has introduced the Pacific North of South Emerging Markets Equity Income Opportunities Fund, a focused portfolio with a high yield.

The Irish-domiciled Ucits fund would invest in 50 to 60 firms throughout the market capitalization range from developing nations, all of which now pay dividends that are greater than the yields available on their respective bond markets.

The fund's total forward yield is anticipated to exceed 8 percent. This is compared to the weighted average 10-year bond yield available on the nation exposure of the portfolio, which is 4%. Matthew Linsey, Kamil Dimseich, and Robert Holmes will oversee the management of the fund.

In addition, the managers will seek to generate a high yield from a reasonably concentrated portfolio of firms chosen for their sustainable dividend characteristics and capacity to increase at least in step with inflation.

Also managed by Linsey and Dimmich is the $1 billion Pacific North of South EM All Cap Equity strategy.

Linsey, said: “Emerging market firms are, in general, seeing elevated earnings and relatively low capital expenditure, leading to high free cashflows. Unlike US firms where buy-backs are the order of the day, emerging market firms tend to distribute.

“Unlike many emerging market income funds, which are often entirely Asia-driven and benchmark orientated, we will invest in the best names in low cost of capital countries across the emerging market universe while offering a very attractive yield. Moreover, we see this in the context of real returns, and we believe this fund could be a truly attractive inflation hedge.”

Pacific Asset Management, situated in the United Kingdom, manages £2.7 billion in assets and is a subsidiary of John Beckwith's Pacific Investments Group, a 1994-founded private family office.


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