Industry super funds back new emerging markets trust

Energy Super and Intrust Super are both major investors in the new Neuberger Berman Emerging Markets Equity Trust, which has opened with $100 million in funds under management.

The trust, which is aimed at institutional investors, is Neuberger Berman Australia's first Australian-domiciled unit trust.

Neuberger Berman Australia senior vice president Paul O'Halloran said the trust would target Australians' high level of interest in emerging market opportunities.

"Introducing an Australian-domiciled trust will make it easier for local investors to take advantage of our well-performing emerging markets strategy, particularly those who prefer the administrative convenience of a unit trust solution," O'Halloran said.

The trust will be managed by a team headed by Conrad Daldanha, who has 18 years of experience investing in emerging markets, he added.

"The Neuberger Berman emerging markets equity team's philosophy is that emerging markets are less efficient than developed ones, thus creating mis-pricing opportunities, especially with small capitalisation companies. The team believes that future growth in the emerging markets will come from domestic consumption," O'Halloran said.

The approach of investing in high quality, growing companies mirrored the current investment strategies of Australian institutions, he added.

Equity Trustees has been chosen by Neuberger Berman as the trust's responsible entity.