Fidelity International today announces it has been appointed as the investment manager of Genesis Emerging Markets Fund Limited by the Board following a competitive process.
Genesis Emerging Markets Fund Limited, the £1.2 billion Company listed on the FTSE 250, will transition to Fidelity International in September of this year, pending Shareholder approval, and will be renamed Fidelity Emerging Markets Limited.
The Company’s investment approach will be led by experienced emerging markets portfolio manager, Nick Price alongside Assistant Portfolio Manager, Chris Tennant.
Fidelity’s emerging markets team is responsible for over $27 billion of assets with members, located in London, Singapore, Hong Kong, Shanghai and Mumbai.
Having joined Fidelity in 1998, Nick Price led the development of its global emerging markets capability, launching the team’s first strategy in 2005. Both he and Chris manage a series of strategies which have a common philosophy and an aligned bottom up stock picking approach.
The Company will draw on the team’s expertise in identifying companies across the full market cap spectrum and exploit opportunities to short stock.
Fidelity Emerging Markets Limited’s investment objective will be to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging market companies, both listed and unlisted.
Fidelity will be paid an annual management fee of 0.60% of Net Asset Value, a considerable reduction to the 0.90%. the Company currently pays under its existing investment management arrangements.
Fidelity has also agreed to waive its investment management fee for the first nine months following its appointment as a contribution to the costs that the Company will bear in respect of the Proposals.
Commenting on the appointment of Fidelity, Chairman of the Company, Hélène Ploix, said: “Following a thorough review of its investment management arrangements and after considering a range of strong candidates in a competitive process, it was clear to the Board that Fidelity has the depth of expertise in emerging markets and in the management of investment trusts. The Company would also benefit considerably from Fidelity’s brand, and its ability to attract new shareholders with its significant marketing resource. We look forward to working with the new portfolio managers and the wider team.”
Alex Denny, Head of Investment Trusts at Fidelity International, said: “We are delighted to be given this opportunity by the Board. Our heritage, expertise and track record in emerging markets is proven and makes us extremely well placed to deliver for shareholders. This year Fidelity celebrates 30 years as an investment company manager and this notable appointment will take our assets under management for closed-ended listed investment trusts in the UK to over £6 billion.”