BetaShares and Legg Mason have launched a new active ETF that will invest in emerging markets equities.
Martin Currie, a Legg Mason affiliate, will manage the new exchange-traded fund, called the BetaShares Legg Mason Emerging Markets Fund (managed fund) (ASX: EMMG).
The comparable unlisted fund has returned 11.98% p.a. net return over a five year period as compared to the benchmark's 9.92% return.
The portfolio has 47 holdings at the time of launch, including Alibaba, Tencent, Samsung Electronics and Ping An Insurance Group.
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Top allocations by country are in China (26%), South Korea (14.7%), Taiwan (10.9%), India (10.5%) and by sector are in financials (26.7%), information technology (23.6%), consumer discretionary (19.4%).
EMMG's management costs are 1% per annum.
Legg Mason managing director, Australia and New Zealand Andy Sowerby said: "Emerging markets which now dominate world economic production also lead future global economic expansion. The International Monetary Fund predicts these economies will achieve average GDP growth of almost 5% per annum over the medium term, a result that advanced economies will not match."
"This faster growth in emerging markets is underpinned by strong secular trends such as a fast- growing middle class, urbanisation, digitisation and social reform. Our new Active ETF (EMMG) has been designed to invest in those companies that are capitalising on these trends."
This is Legg Mason and BetaShares' fourth active ETF together. The two have previously launched active ETFs for fixed income (ASX: BNDS) and equity strategies (ASX: EINC, RINC).