Redwood Asset Management Inc.

Redwood Asset Management Inc.

November 10, 2010 13:19 ET

Redwood Announces Launch of Emerging Markets Dividend Income Fund

First Canadian fund to target dividends in emerging markets

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2010) - Redwood Asset Management, a Toronto-based asset manager that distributes actively managed, performance-oriented funds to Canadians, is pleased to announce the launch of the Redwood Emerging Markets Dividend Income Fund, Canada's first equity income fund focused on the emerging markets.

"The two most prominent themes in the investment world at the moment are the growth in the emerging markets and client need for income as they approach retirement," said Peter Shippen, President of Redwood. "This new fund addresses both of these key themes, in an actively and expertly managed fund.

Redwood has partnered with Somerset Capital Management LLP to provide advisory services to the fund. A specialist in emerging market investing with offices in London and Singapore, Somerset are pioneers in emerging markets dividend investing.

"We are delighted to be partnering with Redwood in the launch of the Redwood Emerging Markets Dividend Income Fund. The emergence of dividend-paying companies in the emerging markets, significant levels of yield and growth available, paired with the strong interest in the space makes this an incredibly attractive proposition for Canadian investors," said Dominic Johnson, Chief Executive of Somerset.

"The portfolio is designed to provide a lower volatility alternative to emerging markets investors, while also providing an attractive and growing dividend stream," highlighted lead fund manager Edward Lam. "While the concept of dividends in emerging markets is fairly new, there are now over 400 companies that meet our investing criteria for yield and liquidity."

The fund, offered under prospectus, will be managed using Somerset's bottom up and top down analysis, comprising a portfolio of between 30-40 dividend paying equities based in markets such as South Africa, Brazil and China.

The fund will be utilizing a currency hedging strategy to immunize the portfolio from significant movements in world currency markets.

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