Rathbones AM Broadens Lux Sicav with EM Equity Strategy

Why It Matters

The fund offers investors active, ESG‑aligned access to fast‑growing emerging‑market companies, filling a gap in under‑owned EM equities and supporting Rathbones’ growth strategy.

Key Takeaways

• New EM equity SICAV adds active, ESG‑focused fund.
• Targets 80‑120 stocks across manufacturing, tech, retail sectors.
• Managed by former GAM team, leveraging quantitative and qualitative analysis.
• SFDR Article 8 compliance meets sustainable investment demand.
• Addresses under‑ownership of high‑growth emerging‑market firms.

Pulse Analysis

Rathbones Asset Management has taken a decisive step in its European expansion by adding the Rathbone Sicav Global Emerging Markets Equity fund to its Luxembourg‑based SICAV platform. The new sub‑fund arrives at a time when investors are scrambling for active exposure to fast‑growing economies in Asia, Latin America and Africa, regions that have outperformed many developed markets over the past decade. By leveraging its newly‑opened Luxembourg vehicle, Rathbones can offer a tax‑efficient structure that appeals to both private and institutional clients seeking diversified emerging‑market equity allocations.

The fund will be overseen by Tim Love and Joaquim Nogueira, former GAM veterans who joined Rathbones in March 2025. Their mandate calls for an active portfolio of roughly 80 to 120 stocks, selected through a bottom‑up stock‑picking approach complemented by top‑down screens for currency risk, sovereign credit quality and corporate governance. Crucially, the strategy is SFDR Article 8 compliant, embedding environmental, social and governance criteria at every decision point. This ESG‑centric framework aims to capture growth while providing downside protection, a combination that many investors view as essential for long‑term risk‑adjusted performance.

By launching this ESG‑aligned EM equity vehicle, Rathbones positions itself to capture a segment of the market that remains under‑owned despite robust earnings growth in emerging‑market corporations. The fund’s focus on sectors such as manufacturing, consumer electronics, e‑commerce, payments and retail aligns with global supply‑chain shifts that favour cost‑effective producers outside the West. If the strategy delivers on its promise of superior risk‑adjusted returns, it could accelerate inflows into Rathbones’ SICAV platform, boosting assets under management and enhancing the firm’s reputation as a specialist provider of sustainable emerging‑market solutions.