Zurich Emerging Markets Fund receives first Lonsec rating

Zurich Financial Services Australia (Zurich) has announced its Emerging Markets Equity Fund has received its first rating from Lonsec.

The Emerging Markets Equity Fund’s underlying strategy is managed by US-based investment manager, Wells Capital Investments (WellsCap), a wholly-owned subsidiary of Wells Fargo Bank, with over $350 billion USD in assets under management.

National Investment Sales Manager, Linda Stangherlin says Zurich is pleased to see the fund achieve this important milestone

“To be able to add the WellsCap Emerging Markets capability to the strong pedigree of managers in Zurich’s Investments line up is a true reflection of Zurich’s strength and experience as an investment specialist,” said Ms. Stangherlin.

A report from Lonsec notes that the yield focus of the Emerging Markets Equity Fund strategy introduces some defensive characteristics into the portfolio, and is relatively differentiated in the peer group by seeking companies that offer both attractive dividend yields, as well as long-term growth opportunities.

It also states that WellsCap has a strong pedigree investing in dividend yield portfolios as well as “a significant level of experience… investing in emerging markets.”

WellsCap operate under the principle that dividend-paying companies exist across a wide range of sectors and countries in emerging markets and offer investors long-term growth potential as well as current income. The fund manager also argues that a high dividend yield strategy can outperform through the cycle with lower levels of volatility.

The fund is currently available through direct wholesale with Zurich and the IOOF range of platforms.

Source: Zurich