Scottish Widows launches emerging markets infra fund(2)

The UK asset manager has launched an open-ended fund which will target infrastructure investments in emerging economies, particularly China, Brazil and Russia. SWIP is also launching an emerging markets smaller companies fund and a Latin American fund.

Asset manager Scottish Widows Investment Partnership (SWIP) has launched an infrastructure fund focusing on emerging markets.

Divya Mathur

The SWIP Emerging Markets Infrastructure Fund is an open-ended fund which its manager said is aiming to outperform the MSCI Emerging Markets Index. The fund is targeted at the institutional investor market in Europe. SWIP will look to have between 35 and 45 holdings in the fund’s portfolio, which includes planned country weightings of around 31 percent to China, 25 percent to Brazil and 14 percent to Russia. The areas of infrastructure covered by the fund include energy, utilities and telecommunications.

The fund will be managed by investment director Divya Mathur.

In addition to the infrastructure fund, SWIP, which is a subsidiary of Lloyds Banking Group, has also launched an emerging markets smaller companies fund and a Latin American fund. All three new funds are sub-funds of SWIP’s Luxembourg-domiciled SICAV (societe d’investissement á capital variable) fund structure.

At the end of June SWIP had £82.6 billion (€94 billion; $136 billion) in funds under management.