Single Manager Solutions:

EM Equity Income

Pacific North of South EM All Cap Equity Income Opportunities seeks to produce a consistent level of income through investment in high yielding equities while also growing the net asset value.

Highly experienced team with over 50 years’ experience

The fund is managed by North of South Capital’s Matt Linsey, Kamil Dimmich and Robert Holmes. 

High yielding concentrated portfolio

The fund invests in 50-60 emerging market stocks across the market cap spectrum, all of which will offer dividends higher than the yield available in their respective bond markets.

The fund managers look to capture a high yield from this relatively concentrated portfolio of companies selected for their sustainable dividend characteristics and ability to grow at least in line with inflation.

Value-driven stock-picking

The team applies an active, value-based approach combining top-down macro research and bottom-up company analysis to identify mispriced stocks, building a carefully diversified portfolio.

A strong focus on risk management is embedded throughout the investment process and underpins the team’s disciplined approach to macro research and company analysis.

This well-established investment process has been successfully implemented in the teams core strategy for over a decade.

From the experts

Hear from Matt Linsey, managing partner and portfolio manager of North & South Capital and Kamil Dimmich, partner and portfolio manager, both Citywire AAA rated, as they outline their approach to investing, outstanding experience and the importance of the cost of capital in emerging markets:

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Matt Linsey, managing partner & portfolio manager

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Kamil Dimmich, partner & portfolio manager

Investment philosophy

North of South three major investment principles:

1

Value investing outperforms other styles over time                                                          

By buying equities whose income streams are priced below those of the market and of its peers we expect to receive more income over time.

2

Value needs to be seen in the context of domestic risk free rate

Equities need to be attractive relative to their domestic fixed income markets in order to perform over the long term.

3

Value needs to be assessed relative to the riskiness of the stock

Establishing a consistent methodology for the equity risk premium is essential in this process.

Outstanding track record

The North of South team also manage the US$1bn Pacific North of South EM All Cap Equity strategy. A multi-cap value focused approach which has outperformed in 8 of the past 10 years, at a time when equities have largely been driven by growth names.

North of South EM Equity Strategy since 2011 – Gross

GIPS Composite
previous UCITS strategy*
31 Jul 11 to 30 Jun 17

Live Pacific EM
Long only UCITS
30 Nov 17 to 31 Dec 21

During 4 month gap
 index returns used
30 Jun 17 to 30 Nov 17

Performance from 31 Jul 2011 to 31 Dec 2021
Annualised performance from 31 Jul 2011 to 31 Dec 2021

Past performance is not indicative of future performance. Performance is provided gross of fees.
During 30 Jun 17 to 30 Nov 17 index returns have been used for the North of South Strategy.

Source: Pacific Asset Management, North of South Capital, Bloomberg

Why Invest?

Seeking companies with a demonstrated ability to have paid significant dividends at multiple stages of the market cycle

Strategic targeting of mature, well-run businesses in countries with low volatility currencies

In-depth macro research integrating equity, commodity and credit perspectives

Proprietary cost of capital approach to identify value across the emerging market spectrum

Value-driven stock-picking, grounded in disciplined fundamental analysis and company visits

Outstanding experience and insights provide a unique perspective on emerging markets

Pacific Asset Management and North of South Capital

Pacific Asset Management became a partner in North of South Capital In May 2017. Sir John Beckwith and the Pacific Investments Group has considerable experience in emerging markets, having founded a number of successful businesses including: Thames River Capital with its flagship emerging market fund Thames River Nevsky, which later became NevskyCapital. The Pacific North of South EM All Cap Equity Fund follows the same process that the North of South team has successfully executed for the last 13 years whilst benefitting from Pacific’s efficient, modern, independent model.

Arrow - Product range@2x
Emerging market firms are, in general, seeing elevated EBITDA and relatively low CAPEX leading to high free cash flows. Unlike US firms where buy-backs are the order of the day, emerging market firms tend to distribute. Unlike many emerging market income funds, which are often entirely Asia-driven and benchmark orientated, we invest in the best names in low cost of capital countries across the emerging market universe while offering a very attractive yield. Moreover, we see this in the context of real returns, and we believe this fund can be a truly attractive inflation hedge.
- Matthew Linsey, Portfolio Manager and Partner - North of South Capital LLP

Investment team

Matthew Linsey

Portfolio Manager and Partner - North of South Capital LLP

Matthew Linsey is Managing Partner and Portfolio Manager at North of South Capital LLP, with overall responsibility for stock selection and top-down asset allocation themes. Prior to founding North of South Capital LLP in 2004, he was the Head of Emerging Markets Equities at Deutsche Asset Management from 2000-2004.
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Kamil Dimmich

Portfolio Manager and Partner - North of South Capital LLP

Kamil is the Portfolio Manager and Partner at North of South Capital LLP. He is responsible for portfolio construction, quantitative analysis and conducts the company research, risk analysis and portfolio attribution. Previously having worked as an Equity/Derivative Portfolio Manager at Dresdner Kleinwort. He has over 15 years’ experience in equity and derivative trading.
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Robert Holmes

Portfolio Manager and Partner - North of South Capital LLP

Robert is a Partner at North of South Capital LLP and a Portfolio Manager of the Pacific North of South EM Equity Income Opportunities fund. Robert has over twenty-five years of experience in Emerging Markets and has been lead manager of long/short, long-only and multi-asset funds.

Mark Latham

Strategist / Natural Resource Analyst & Partner - North of South Capital LLP

Mark is Strategist / Natural Resource Analyst and Partner at North of South, having joined the company in 2004. He uses his specialist knowledge to identify shifts in global economic trends and recommends stocks in natural resources sector. Mr Latham holds a Masters in Natural Science from Cambridge University. He is based in Portsmouth.
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Arnoud van Leeuwen

COO and Partner - North of South Capital LLP

Arnoud is the Chief Operational Officer and Partner at North of South, having joined the company in 2004 initially as the Operations Manager. He is responsible for operational, compliance and infrastructure within the company. He achieved a BA in International Finance and Marketing from Boston University and holds a MA from London Business School.
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Tony Tsai

Senior Analyst at North of South Capital LLP

Tony is a Senior Analyst at North of South. Tony has over 25 years of industry and stock analysis experience gained at a number of well-known Taiwanese technology companies. Prior to joining North of South, Tony was well known to the team in his roles at United Overseas Bank of United Overseas Bank of Singapore and the Taiwanese brokerage firm Sinopac Securities, where he recommended China and Asian technology companies.

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