MLC AM targets EM strategy with fresh mandate

MLC Asset Management has selected a global investment manager to leverage its 16-year-old emerging markets strategy.

Ninety One has been appointed by MLC for its 4Factor Emerging Markets Equity strategy, which seeks opportunities in companies listed or based in emerging markets, as well as businesses with significant economic exposure to them.

The $22.8 billion strategy is co-managed by portfolio managers Archie Hart and Varun Laijawalla and applies an active approach that provides core exposure to global emerging market equities through a portfolio with balanced exposure to growth, quality, value and momentum through the cycle.

The strategy seeks to generate long-term excess returns through bottom-up stock selection without taking excessive risk, Ninety One said.

The strategy sits within Ninety One's $48 billion emerging markets equity platform, which offers a range of strategies tailored by geography, risk profile and investor objectives.

Commenting, MLC Asset Management head of equities Stanley Yeo said the appointment follows a comprehensive review of the emerging markets equity landscape.

"In an environment where fundamental global equity managers have been challenged, the emerging markets multi-manager portfolio we manage has delivered strong alpha," Yeo said.

"Ninety One's proven investment approach and deep expertise in the asset class make them a strong partner as we seek to continue to deliver positive outcomes for our members and clients."

Meanwhile, Ninety One co-head of Australia Stephen Small said emerging markets continue to provide meaningful sources of growth and innovation for portfolios.

"Yet they remain underrepresented in many global portfolios, creating a compelling opportunity for long-term investors. It is an opportunity Ninety One understands deeply after 35 years of investing in emerging markets," Small said.

"MLC Asset Management is an important partner for Ninety One, and this mandate reflects our shared conviction in the role emerging market equities can play in delivering long-term outcomes for Australian investors."

Ninety One had $345.5 billion in assets under management as at September 30.