7IM heads back into frontiers targeting regions under Trump’s radar
With the US administration currently embroiled in ‘Nixonian’ style domestic affairs, potential US protectionism nevertheless remains very much an issue, according to Seven Investment Management (7IM), who have gone back into Frontier Markets after a two and a half year absence.
The move back into Frontier Markets is for the more adventurous portfolios and comes as 7IM seeks exposure to uncorrelated, high growth regions that are under Trump’s radar. 7IM began building its position in Frontiers in April and made the most recent investments in May.
Tony Lawrence, Investment Manager, 7IM said: "In November 2014, 7IM sold out of Frontiers due to concerns about the sector’s high exposure to the oil price, which proved a good exit point. Since then, developed market equities have delivered superior returns, but are starting to look less attractive. In contrast, valuations in Frontier Markets appear more compelling than their developed counterparts, although this is not the main driver for 7IM’s return to Frontiers. Rather, the attraction is about gaining exposure to uncorrelated, high growth economies that are under Trump’s radar and that have less exposure to potential US protectionism. We built the Frontiers position over the last month, gradually recycling profits made elsewhere and are watching for opportunities to increase our exposure further.
"Persistent price inefficiencies in Frontier Markets make it an ideal hunting ground for active fund managers to add value. For our multi manager 7IM Adventurous Fund, we have selected Charlemagne Magna New Frontiers, an Emerging and Frontier Market specialist boutique, where the vastly experienced co-managers pursue an unconstrained and high conviction stock-picking approach, holding a differentiated portfolio that stands out from the crowd.
"We have also selected T Rowe Price Frontier Markets for our 7IM AAP Adventurous Fund, which is our range that uses active asset allocation, largely implemented with passive strategies. However, with an absence of credible passive options in this space and given the opportunity to add significant alpha, we were very happy to employ the active capabilities of T Rowe Price, allowing us to leverage the depth and breadth of T Rowe’s global equity research platform."
|7IM Adventurous Fund (multi manager):||7IM AAP Adventurous Fund|
|Launched: December 2003||Launch date: March 2008|
|Exposure to Frontiers at end December 2016: 0%||Exposure to Frontiers at end December 2016: 0%|
|Exposure to Frontiers currently (at 10 May 2017): 2.5%||Exposure to Frontiers currently (at 10 May 2017): 2.5%|
|About Charlemagne Magna New Frontiers||About T Rowe Price Frontier Markets|
|Unconstrained high conviction stock-pickers||Large dedicated Frontiers Team|
|Differentiated Portfolio||Leverage the depth & breadth of T Rowe’s Global Equity & Fixed Income Research|
|The Co-Managers each have 25+ years directly running Emerging/ Frontier money successfully||US $820bn AuM Globally|
|Also run a Long/Short Frontiers product which provides a unique perspective on the market||250 Research Analysts|
|Boutique within a boutique|
|Able to leverage a deep & experienced analyst team (11 Analysts, 18yrs Average Experience)|
For further information, please contact:
Seven Investment Management
0203 823 8696
07776 204 610
NOTES TO EDITORS
About Seven Investment Management:
7IM provides investment services to professional wealth managers, planners and advisers. These include:
- Discretionary investment management with advice
- A range of multi-asset portfolios
- An investment and open architecture trading platform
- A developed range of banking services
- A fantastic app, 7IMagine, to bring the client portfolios to life.
7IM – a story of Continuous Innovation
Since 7IM launched back in early 2002, it has pioneered a continuous stream of developments regarding how investment services are provided and charged for. We could just provide a list of our awards, but actually think it is more useful to tell you what we have done and what we have provided for clients and their planners - and there is still more to come.
- January 2001 – First Sterling Online Wrap Account launched with ongoing Asset Allocation
- January 2003 – First White Label live
- January 2004 – 7IM OEIC live
- July 2005 – 7IM Platform live
- September 2005 – New 7IM Income Fund launched
- February 2007 – 7IM Sustainable Balance Fund launched
- December 2007 – 7IM gains its own FSA authorisation and new institutional investors
- January 2008 – 7IM joins the London Stock Exchange
- March 2008 – 7IM launches the AAP (Asset Allocated Passives) range of funds
- October 2009 – 7IM introduces 3rd party multi manager funds into the DFM service
- October 2009 – 7IM Personal Injury Fund launched
- April 2011 – 7IM launches enhanced, ‘on-demand’ client reporting
- January 2012 – 7IM Unconstrained Fund launched
- June 2012 – 7IM launches Fixed Term Deposits
- January 2013 – 7IM launches Asset Backed Lending
- March 2013 – ‘7IMagine’ launched
- June 2013 - Assets under Management pass £5bn
- October 2013 – 7IM launches preferred SIPPs with DP Pensions Ltd and Carey Pensions UK
- October 2014 – Assets Under Management pass £7bn
- January 2015 – Assets Under Management pass £8bn
- March 2015 – In partnership with AXA Wealth, 7IM announces preferred Offshore Bond offering
- June 2015 – Assets Under Management pass £10bn
- February 2016 – 7IM launches My Future a new feature of the 7IMagine app which allows advisers and clients to enter the details of their existing savings and pension contributions, we well as spending expectations in retirement to identify when their cash will run out.
August 2016 – 7IM launches a Windows version of the 7IMagine App which allows 7IMagine to be used on all Windows devices including Microsoft Surface Pro, Windows phones and PC’s.
Seven Investment Management LLP is authorised and regulated by the Financial Conduct Authority. Member of the London Stock Exchange. Registered office: 55 Bishopsgate, London. EC2N 3AS. Registered in England and Wales No. OC378740.