Econopolis Patrimonial Emerging is an emerging markets funds focused on Econoshock themes, which invests in the economies of the future.
We use first-hand information via the Econopolis office in Singapore to keep a finger on the pulse in the financial centre of Asia. This allows us to anticipate the many investment opportunities offered by developing countries in a flexible way, based on reliable information.
Why developing countries?
Higher growth, lower debt
Within ten years the world will look completely different – and developing countries will be largely responsible for this. Even today they already provide the majority of the growth in the global economy, and we expect this to only increase in the future. High levels of growth give an injection of oxygen to countries, companies and local society. At the same time, levels of structural debt are lower in developing countries than in the West.
Various developing countries such as India, Indonesia and the Philippines have a very young and well-educated population – in stark contrast to many Western countries. Combined with an emerging middle class and increasing urbanisation in the region, this is a cocktail that long-term investors dream of.
Developing countries that are implementing structural reforms will not disappoint investors. Indeed, countries that do not evolve and reform should mostly be avoided. In many countries, elections act as a catalyst. The election of reform-minded leaders can lay the foundations for high levels of sustainable growth, which investors can anticipate in many ways.
Structural long-term demand
Developing countries are already making a major economic contribution to the global economy and this will continue to increase over the coming years. However, the importance of developing companies in the financial markets is running a decade behind their economic importance. In the next few years, this will translate into a structurally increasing demand for equities and bonds from developing countries.
Broad rang of opportunities
Developing countries offer investment opportunities that you will not find anywhere else in the world. Particular countries in Africa, Latin America and Asia with very high levels of growth, but which are still designated as ‘frontier’ markets, may well become the developing countries of tomorrow.
Why Patrimonial Emerging?
Our analysts and fund managers operating from our Econopolis office in Singapore have direct contact with Asian companies. First-hand information is critical if you are to be able to sort the wheat from the chaff in these markets. By having a finger on the pulse, we are able to anticipate opportunities that we discover ourselves, instead of relying on third-party information.
We do not use derivatives or complex structures with derivatives, we do not engage in explicit hedging or short selling. What you see is what you get. Our cost structure is low and transparent: no entry fees, no exit fees, no performance-related fees.
Complete flexibility and active management
The fund can invest dynamically between 0% and 100% in both equities and bonds. This means we can always actively take advantage of great opportunities arising in these markets. This also applies to the choice of countries, regions, sectors, bond terms, ratings and currencies in which we invest.
Econopolis has a collaboration agreement with Sustainalytics, the leading global researcher into business sustainability. Sustainalytics reviews the environmental and social policies of companies and countries, as well as the quality of governance. The sustainability ratings for businesses are factored in as part of our decision-making process.
Disciplined decision-making process
One of the things required by our investment process is a comprehensive financial analysis that forces us to exercise the necessary discipline in terms of valuations. We do not simply follow the markets, nor are we tempted by investments that do not meet our valuation criteria. We also steer clear if we have doubts about the corporate governance of a company. Moreover, our medium-term investment horizon ensures that the number of transactions in the fund remains relatively low.
Blindly following an index is not part of our investment philosophy. We do not invest in countries, sectors or companies simply because they are part of an index; we only invest in line with our own convictions.
Characteristics and fees
- Name: Econopolis Patrimonial Emerging
- Type: Luxembourg SICAV
- Capitalisation (ISIN: LU0889926282) and distribution (ISIN: LU0889944772)
- Launch date: 19/02/2013
- Management fee I-klasse: 0.8%
- No entry fees, no exit fees
- No performance fees
I-class reserved for institutional investors
- The fund invests on a medium to long-term basis in equities and bonds issued by companies in emerging markets which we follow locally via our office in Singapore.
- There is maximum flexibility: allocations to bonds and equities can vary between 0% and 100%.
- The composition of the fund is based on strong convictions and sound insights, acquired from intensive research.
- The focus is on specific themes, countries and companies, carefully selected through an independent point of view.
- No unclear or complex performance-related fees are charged.