Kate Mulligan, KIFM Managing Director (R) and Richard Mulligan, KIFM CEO (third from right) with members of the SURA team.

King Irving Funds Management has launched a fund providing Australian investors with their first ever access to a key new Emerging Market.

The King Irving SURA Pacific Alliance Fund (the Fund), has been established to meet the needs of professional investors searching for new sources of growth and diversification. An outcome of this has been an increasing focus by professionals in key emerging markets.

The Fund’s strategy of investing in equities in the growing Pacific Alliance Region of Mexico, Colombia, Peru and Chile reflects this developing investor appetite for best in asset class, and in local and regional investment expertise.

King Irving is a specialist fund manager providing access to International managers not otherwise available in the Australian market. Kate Mulligan, Managing Director of King Irving Funds Management, said that they are delighted to provide access to this significant growth marketplace by establishing an Australian fund managed by a regional expert.

“The growth prospects for Pacific Alliance makes a compelling investment case, particularly when compared to the expected low growth environments of many developed and even some EM economies,” she said.

Reforms adopted by Peru, Mexico, Chile and Colombia – Pacific Alliance member countries – are turning these nations into the economic stars of the region[1] . In Latin America (Latam), Pacific Alliance represents a bigger economy than Brazil and is expected to grow three to four times faster over the next few years.[2]

“With the hunt for growth spurring increased investment in emerging markets in the medium to longer term, the importance of selecting the right EM region with strong governance and regulatory standards is critical for the generation of strong returns for investors,” Ms Mulligan said.

“We are pleased to announce the appointment of the SURA Asset Management Group as manager of the Fund. SURA is the leading pension provider and asset manager of Pacific Alliance. Until now, investment in Latam has been expressed only through Brazil, which does not share a similar economic or governance footprint as the Pacific Alliance, and investors may not have been aware of the potential benefits of investing there.”

Andrés Castro, Chief Executive Officer of SURA Asset Management said, “With our heritage of adding value to millions of local investors for over 30 years, we feel very enthusiastic about providing Australian investors with access to our proven investment capabilities. Countries in the Pacific Alliance Region share a focus on open trade, regulated markets and rule of law. The investment fundamentals combined with these factors make a compelling argument for inclusion of this capability as a strong potential provider of alpha in professional portfolios.”

Afina International Advisors (Afina), a Latin American specialist adviser firm, assisted King Irving Funds Management in the search and selection of the manager for the Fund. Alex Ortiz, Afina Chief Investment Officer, said, “The access to Pacific Alliance underscores the increasing importance of South to South trade and investment routes.”

The Fund has been seeded by SURA Asset Management and commenced operation as a wholesale domestic managed investment scheme earlier this year. State Street Australia Limited is the Fund’s appointed Custodian and Fund Administrator.

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[1]International Monetary Fund (IMF) Managing Director, Christine Lagarde, October 9, 2015
[2] CNBC report, 26 March 2015

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Mulligan said “From my discussions with the market, it’s clear there is a need for implemented solutions. Companies are experiencing shortages for proven skill sets in establishing and growing businesses.”

She added, “With my experience as a Financial Services lawyer combined with running three successful funds management companies over the last ten years, King Irving is well placed to assist fund managers with establishment, growth and change.”

King Irving specializes in the following key areas:

Establishment and growth of Funds Managers
Selection of outsourced Service Providers
Product development
Marketing and distribution
Investment manager selection
Compliance and risk systems.

Mulligan stated, “Coping with the confluence of FOFA, Stronger Super and tax changes is another pressure point for the industry, exacerbating the need for skilled resource.

King Irving’s clients tell me that being able to access my level of strategic skill with the ability to implement effectively is a high demand commodity.”

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