Milltrust International?s first three regulated UCITS funds launched on their managed accounts platform, EMMA (Emerging Markets Managed Accounts plc), have come out of the blocks at a blistering pace, delivering stellar returns which have also proved to be uncorrelated with their respective market indices.

EMMA was established with State Street to provide institutional investors with the safety of a single custodial investment platform, and hence the advantages of look-through transparency so investors can see where returns have come from and what risks have been taken to achieve them. The first three funds comprise of a Greater China equities fund, managed by Value Partners in China, a Latin American equities fund, managed by the largest pan-Latam bank, Ita? Unibanco, and a Brazil equities fund, run by BTG Pactual, the pre-eminent investment banking firm in Brazil.

“It has been a roller-coaster ride for all emerging markets without exception over the last 18 months”, said founder and hedge fund veteran, Simon Hopkins. “And whilst all the big names are in negative territory, the performance of our managers shows how regional stock pickers can deliver positive alpha, as well as real returns even in the most hostile of climates”.

Since launch 18 months ago, the Milltrust Value Partners Greater China Fund returned an estimated 19.29% to investors versus the MSCI Golden Dragon Index which gained 12.49%; the Milltrust Latin America Fund gained 11.10% versus the MSCI Latin America index which lost 7.85% over the same period; finally, the Milltrust Brazil Fund returned 2.87% since June 2012, versus the Ibovespa index (USD) which declined by 19.66%.

EMMA is the first dedicated EM managed account platform. Investors can now build their regional exposure to the key markets using the funds above in a single custodial solution, de facto running a single EM portfolio but with no additional costs or overarching fund of funds structure. “All the costs associated with the provision of the managed accounts are embedded within the management fees. This belt and braces safety does come at a cost but we absorb this from the fees we earn”, said Eric Anderson, Managing Partner of Milltrust International LLP, the London-based promoter of the funds. “We are delighted that our value offering has achieved such success which proves that investors can combine performance with a safer and more transparent investment structure”.

“Investors globally are demanding regulated funds, but typically I do not wish to compromise performance for greater control. Our EMMA funds have truly come into their own through their unique and differentiated long-biased and actively managed mandates, returns which are uncorrelated with their respective indices and which rank in the top of their respective peer groups” commented Alexander Kalis, Managing Partner and Head of Investment Research at Milltrust International.

?In addition, there is a good chance 2014 will be a positive year for emerging markets investors with the key catalysts expected from upcoming elections in India, Indonesia, Brazil and Colombia, the implementation of long overdue structural reforms in China set out in the Third Plenum’s agenda, and an uplift from the Brazil feel-good factor from hosting the 2014 World Cup, not to mention emerging markets valuations and currencies now trading at attractive levels compared to the developed markets.? Kalis added.

Two additional funds were added to the EMMA Platform during 2013 including the Milltrust India Fund, managed by UTI Asset Management Company (UTI), the oldest asset manager in India, and the Milltrust ASEAN Fund managed by Lion Global Investors, a subsidiary of OCBC Bank in Singapore, rated “the World’s Strongest Bank” by Bloomberg in 2012, with $24bn in assets under management.

About Milltrust International Group

Milltrust provides investors with access to Real Assets and public equity investment opportunities with leading local advisors drawn from across the Emerging Markets, and structures these strategies to provide the necessary transparency and safety of assets required by investors today. Milltrust International Group (Singapore) Pte Ltd. is a group holding company for the group’s operating companies, which include Milltrust International LLP, authorised and regulated by the Financial Conduct Authority of the United Kingdom, and its wholly owned subsidiary Milltrust International (Singapore) Pte Ltd, a company that has applied to become a regulated fund manager in Singapore, and currently operates under the exemption provisions of the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10). milltrust.com

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