Baring Asset Management is set to launch a new Baring European Opportunities Fund, subject to regulatory approval.
Designed to meet the demand from investors for a product which can also invest in the UK market, the new fund will be co-managed by Nick Williams, Barings’ head of small cap equities, and Colin Riddles, an investment manager in Barings’ small cap equity team.
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The managers will leverage off Barings’ in-house research team to select under-researched stocks from a universe of about 7,000 names, in order to construct a portfolio of around 100 holdings.
The fund will look for investment opportunities in European smaller companies, including firms based in the UK, and will be benchmarked against the MSCI Europe Smallcap Index.
Domiciled in Dublin, the offshore fund will have a similar mandate to the group’s Europe Select Trust, but also has the scope to invest in the UK, unlike the existing mandate.
Williams said: "For a while now, European equities have languished compared to other markets, as investors have been cautious on the prospects for European economic growth. Despite this, exciting investment opportunities continue to be found in smaller companies.
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By GlobalData"Recently there has been an improved sentiment towards European equities, and whilst we have seen gains in European and UK smaller companies, we believe there remain interesting stock opportunities for us to identify," Williams added.
The fund will be structured as a UCITs portfolio, with a minimum investment of 3,500 for the retail share class, and an annual management fee of 1.5%.
