03 Apr 2023

3 April 2023, Chicago, IL- Eastspring Investments (“Eastspring”), the USD 221 billion1 Singapore-based, global asset management business of Prudential plc (UK), in partnership with Global Trust Company, a Maine chartered non-depository Trust Company, has announced the launch of the Eastspring Collective Investment Trust to provide US institutional investors with broader access to several of Eastspring’s flagship strategies via commingled pooled vehicles.

Commenting on the launch of the two Collective Investment Trusts, Matthew Appelstein, CEO of Americas and Head of International Distribution at Eastspring Investments, said:

“The launch of our Global Emerging Markets Equity and Global Low Volatility Equity CITs reflect our ongoing commitment to provide institutional asset owners in the US with access to several Eastspring focus capabilities. We continue to see strong demand from institutional allocators and asset owners and recognize the importance of expanding vehicle availability to include commingled pools in order to provide greater access, simplicity, and cost efficiencies for clients and prospective clients. We’ve set aside up to USD 250 million for initial investors at reduced management fees for each commingled vehicle to help encourage client adoption and are excited that a US corporate client funded the Global Emerging Markets Equity strategy in February 2023. We believe this demand will continue and are further expanding the range of strategies and commingled investment vehicles, including the coming launch of LLCs for non-ERISA and non-US qualified investors.”

The new funds are available to Employee Retirement Income Security Act (ERISA) qualified defined benefit and defined contribution plans, offering exposure to Eastspring’s Global Emerging Markets Dynamic Equity and Global Low Volatility Equity strategies. The firm will also expand the line up to include their China A Shares Growth Equity strategy which is advised by Eastspring’s Shanghai-based China Equity team.

Launched in 2010, the Eastspring Global Emerging Markets Dynamic strategy seeks to generate consistent alpha over a full market cycle by investing in attractively valued, lesser owned and out of favor stocks of companies based in emerging markets globally. Managed by a dedicated eight-person investment team led by Andrew Cormie, it has maintained a competitive track record of generating alpha via a high conviction portfolio of 40-60 stocks identified by combining proprietary valuation and deep fundamental analysis. The Eastspring Global Low Volatility Equity strategy leverages the expertise of one of Asia’s largest quantitative teams, led by Ben Dunn. Employing the firm’s proprietary multi-factor alpha models to drive active stock selection across global equity markets, it seeks to deliver higher risk-adjusted returns with lower volatility and downside capture over a full market cycle. By constructing an active portfolio of stocks which in aggregate create a complimentary, lower volatility profile than the broad global equity market, the strategy has successfully delivered attractive risk-adjusted returns over its six-year history.

1 As of 31 December 2022.

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