The offering will focus on investment opportunities offered by small-cap companies in Europe, Japan, and the Far East, and its objective will be to seek long term capital appreciation and a return in excess of that achieved by the Morgan Stanley Capital International Europe Australasia Far East Small Cap Index (EAFE Small Cap Index), according to the announcement.
The maximum market capitalization of each holding at purchase for the fund will be $5 billion at the time of initial investment.
Nick Williams, head of Small and Mid Cap Equities at Barings, will manage the product. “Following the sharp decline in valuations over the last two years, this asset class offers investors the opportunity to invest in a wide range of exciting companies from around the world at attractive levels. We believe the key to unlocking these opportunities for investors is experience within this investment category combined with a proven investment discipline to identify appropriate small cap stocks,” he said in a press release.
He added: “Barings international small-cap equity product will draw on our skill sets in both International Equities and European Small Cap markets and will serve as a logical extension to our current European small-cap product.”