HEXAM funds awarded OBSR rating

HEXAM Capital's Global Emerging Markets funds have just been awarded a prestigious rating by OBSR.

Managed by Bryan Collings, the Dublin-domiciled Ignis International HEXAM Global Emerging Markets (GEMs) Fund has returned 43.0% since launch on 6 November 2006, ranking it 5th percentile in its sector since inception.

A UK-domiciled version of the fund was made available to UK retail investors in February 2009. The Ignis HEXAM Global Emerging Markets Fund has returned 46.1% since launch and is ranked 1st in its sector over the period.

The GEMs funds are 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.

Bryan Collings says: "We are delighted that both the offshore and onshore funds have been awarded an OBSR rating, which is welcome recognition of the consistency of our performance and investment process and our unconstrained, blended style. OBSR apply a rigorous process and a rating provides a benchmark of quality used by investors worldwide.'

Richard Romer-Lee, Investment Director at OBSR comments: "The managers strongly believe in the merit of managing high conviction, concentrated portfolios and not diversifying the returns away. At the same time, however, they are very risk aware and are at all times cognisant of the level of risk being taken to generate the required level of return. The HEXAM team are experienced equity managers and this fund offers a thoughtfully constructed and pragmatically managed vehicle for investing in Global Emerging Markets. We therefore believe that the fund merits an OBSR A Rating."

The HEXAM team adopted a well-founded cautious approach over the summer months. However the team believe that there are now clear signs of improvement both in demand and liquidity across the world and they are increasingly optimistic for returns over the coming months. HEXAM is currently increasing allocations to Russia and Brazil and the significant overweight in China will be retained. The team is also building exposure to Indonesia and the commodities sector.

Collings concludes: "We expect emerging markets to post a positive return through the remainder of the year and the HEXAM portfolios are well positioned to benefit. Despite the recent price rises, valuations in emerging markets continue to trade at a discount to developed markets. For 2010 and beyond, the outlook also remains extremely positive with structural drivers, including lower household debt, better macro economic balances, superior demographics and the development of capital markets, stacked in favour of emerging markets."