Dalton launches first local-domiciled fund

Dalton Investments Australia has launched its first Australian-domiciled strategy for global equities, which combines traditional values with artificial intelligence (AI) for research capabilities.

The Lumina Equity Fund is managed by Dalton Investments, which is a Los Angeles-based, employee-owned investment manager with approximately $9.5 billion in funds under management as at June 30.

Dalton Investments has seeded the fund with its own capital, demonstrating its commitment to the strategy and alignment with investors, it said.

The SILC Group has been selected as the trustee to provide governance, regulatory oversight, tax reporting and operational support, while fund administration which includes operations, investor onboarding and accounting, is provided by Fenix Funds Administration.

It will invest in a concentrated portfolio of around 20 to 40 international companies that combine traditional value investing with AI-enhanced research capabilities across international markets.

The strategy will utilise AI research tools to expand information gathering, identify potential investment opportunities and improve research efficiency, with Dalton remaining responsible for investment decisions, the firm said.

The fund is available for wholesale investors.

Lumina Equity Fund portfolio manager Craig Mercer said AI is playing an important role in investment research and can strengthen traditional investment disciplines.

"AI is transforming how investment teams access and process information, but successful investing still depends on judgment, experience and disciplined decision-making," he said.

"The Lumina Equity Fund combines Dalton's long-established value investment philosophy with an AI-enhanced research platform that helps us analyse more companies, identify opportunities more efficiently and spend more time evaluating investment quality, portfolio construction and risk."

Meanwhile, The SILC Group managing director Koby Jones highlighted a growing demand from investors for stronger governance and operational infrastructure across innovative investment strategies.

"Dalton Investments has a long track record of global investing, and SILC is pleased to help launch its first Australian fund and support its growth in the local market," Jones said.

"Our role is to provide the governance, oversight and operational framework that allows investment managers to focus on delivering outcomes for investors while maintaining the highest standards of compliance and accountability."

The trustee service provider also helped another US-based investment manager to introduce its global equity fund in August, as well as welcoming its inaugural head of trustee and responsible entity solutions last month.