The Swedish national pension fund Första AP-fonden (AP1) has invested in an equity fund for emerging markets launched by Somerset Capital Management.
The newly created Somerset Emerging Markets Future Leaders fund will invest primarily in medium-sized companies that derive most of their profits from emerging markets.
AP1, which has worked with Somerset for seven years, has invested USD 350 million (EUR 294.9 million) in the fund as seed capital.
Somerset said the fund will implement the company’s own ESG criteria, including the company’s commitment to influencing positive change rather than investing in the tobacco or fossil fuel industries. This, the company said, is designed to accommodate pension funds and other long-term institutional investors around the world.
Somerset partner and fund co-manager Anthony Linehan said, “The era of ill-managed, corrupt, high-profit companies is coming to an end. Distinguishing between those who take corporate governance and sustainability issues seriously and those who don’t is critical in identifying future winners and losers. “
Somerset Capital was founded in 2007 and has approximately £ 5.4 billion in assets under management.
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