HEXAM fund awarded S&P AA rating

HEXAM Capital's Global Emerging Markets fund has been awarded a prestigious ‘AA' fund management rating by Standard & Poor's.

Managed by Bryan Collings, the Dublin-domiciled Ignis International HEXAM Global Emerging Markets (GEMs) Fund, was awarded the ‘Best Equity Newcomer 2008' award across all equity sectors by Portfolio Adviser. A UK-domiciled version of the fund was made available to UK retail investors in February 2009.

The GEMs fund is run in a high conviction style with Collings and the HEXAM team taking a pragmatic approach to stock selection, blending top-down and bottom-up analysis into their GLCMV (growth, liquidity, currency, management and valuation) investment approach.

The Ignis International HEXAM Global Emerging Markets Fund has an excellent performance track record, gaining an additional 5.5% on a relative to benchmark† basis in May, taking 2009 relative returns to 20.2%. The fund is ranked in the top percentile in its peer group in 2009 and 2nd percentile since its launch.

Bryan Collings says: "We are delighted that the fund has been awarded an AA S&P rating, which is welcome recognition of the consistency of our performance and investment process and our unconstrained, blended style. S&P apply a rigorous process and a rating provides a benchmark of quality used by investors worldwide.'

HEXAM currently favours the markets of China, Russia, and Indonesia. China is supported by a substantial stimulus package, significant reserves and a population that is only just beginning to consume goods and services. It is widely accepted that China will be a driver of global growth in the years to come. In contrast, at the end of last year it was incorrectly rumoured that Russia was ‘bust', despite owning the world's third largest foreign exchange reserves. The ensuing retreat by international investors left Russian equities staggeringly cheap. Now investors have back pedalled, realising the world has realised Russia is far from ‘bust' and that prospects remain attractive, its stock market has rallied some 77% from its February lows. In Indonesia, rising commodity prices are positive for the rural income sector of the labour force while the firmer exchange rate and continued decline in inflation led to a rate cut for the sixth consecutive month in May.