Global dividends jump 11% in the first three months of 2022
Global dividend payments have had a strong start to 2022. According to the latest Janus Henderson...
Magna EM Income & Growth
This fund offers exposure to emerging market companies that pay higher-than-average dividends. This results in a slightly lower risk profile than peers and an attractive yield.
Previously Magna Emerging Markets Dividend
Our opinion
A hidden gem among other better known emerging markets funds, with also pays a yield. This fund benefits from a specialist team, an intuitive investment approach and the backing of a company with many years of specialist experience.
Company description
This fund is managed by Fiera Capital. Fiera Capital’s European division was established in 2000 under the name Charlemagne Capital; it became part of Fiera Capital in December 2016. Fiera Capital Corporation is a global independent asset management firm with over USD125 billion in AUM as at 30th June 2020. It delivers customised multi-asset solutions across traditional and alternative asset classes to institutional, retail and private wealth clients across North America, Europe and key markets in Asia. The group was awarded the Elite Equities Provider rating in 2017 and 2018.
Fund manager
Ian Simmons joined the firm in 2004 from Fidelity. His initial role was that of an Asian analyst, before he transferred his coverage to Latin America and become a lead portfolio manager for Latin American strategies in 2009. He was appointed as co-manager of the Emerging Markets strategies in 2017, before becoming a lead manager in 2018. Ian holds an MA in Geography from Cambridge University and is a CFA Charter holder.
Our analysis relies upon discipline and common sense in equal measure.
Ian SimmonsFund manager
Investment process
The investment process is focused on finding the best companies, rather than predicting market or economic trends. The team search for companies that are able to pay high dividends in the short term but are also able to grow those dividends over the long term. These are often in niche areas, which may be overlooked by less well-resourced teams. The best ideas are then used to create a balanced portfolio.
ESG
ESG - Integrated
The managers of this fund consider ESG to be a positive discipline. While they believe that negative screens rule out some key industries, they also use ESG analysis to make them aware of the risks within a company and the opportunities for growth and improvement. ESG analysis is performed by the investment team with the belief they are best placed to assess a management’s understanding and willingness to engage and improve. They can reflect ESG issues implicitly in their forecasts or explicitly with valuation adjustments.
They look for companies where there is alignment with the UN’s 17 Sustainable Development Goals as they consider these more likely to offer sustainable growth. Each investment is scored by the team on a proprietary scorecard. This covers areas such as the business model, management, financials, exogenous risks and ESG. The managers carry out detailed work on ESG, considering not only current ESG practices but also direction of travel, willingness to engage and overall sustainability alignment. A low-scoring company is unlikely to make it through the initial stages of idea generation, while within the ESG section there is also a minimum standard expected.
Risk
In common with all emerging market portfolios, this fund is likely to be more risky than a UK stock market investment over the long term. However, the emphasis on dividends is likely to create a lower risk profile than most other emerging market funds.
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