Funds distributor Spring Capital signs up global emerging markets specialist

In a statement  today (12 March), Spring said its agreement with Cusana Capital was aimed at growing the global emerging market specialist’s funds presence in the UK and across Europe.

With Spring’s existing fund manager partners focusing on UK, European, Japanese and global developed market equity strategies, access to the emerging market asset class "fits seamlessly into its fund offering", the statement said.

Over the past two decades, Spring Capital has helped to build the total assets under management of its fund manager partners – which include Chelverton Asset Management, Evenlode Investment Management and Zennor Asset Management – to more than £7bn.

Spring sources assets from multiple distribution channels including wealth managers, private banks, family offices, fund of funds managers, multi-managers, endowments, charities, pension funds, consultants and IFAs.

Malcolm Arthur (pictured), director at Spring Capital, said: “Spring Capital has a demonstrable track record of long-term partnerships with investment boutiques, and we are thrilled to have Cusana Capital on board. Global emerging markets are a key consideration for asset allocation and Cusana offers a truly differentiated strategy in the asset class.

"We have a high bar for new manager partners but Rob Marshall-Lee’s track record coupled with his skilled, experienced and motivated team has all the attractive characteristics we look for in a partner.”

Cusana Capital was co-founded by CIO Rob Marshall-Lee, who spent 21 years at Newton Investment Management, where he founded and led its emerging markets franchise. With a 5-star Morningstar rating, Marshall-Lee left Newton to establish the Brook Global Emerging Markets Fund, setting up Cusana Capital with Jos Trusted in 2022. Cusana runs one global emerging market strategy, which is available as a UCITS and an Ireland-regulated QIAIF.

Cusana’s investment team adopts a benchmark-agnostic approach and invests in a concentrated portfolio of 25 to 35 stocks – avoiding the value-destroyers and investing in value-generative businesses with a long-term mindset. In 2024, Cusana’s Sector Emerging Markets Equities Fund returned 22.7 per cent compared to the MSCI Emerging Markets Index net return of 7.5%.

Emerging markets offer investors access to rapidly growing economies, younger demographics, and untapped consumer markets, with a growing middle class, all of which can potentially drive substantial long-term returns. At first glance, broad-based exposure to these markets might seem an obvious choice for equity investors. However, Cusana Capital takes a more selective approach, operating under the premise that 95% of stocks will ultimately destroy value and that most returns are driven by a small cohort of stocks.

Rob Marshall-Lee said: “It’s not just the hit ratio that drives returns – it’s about getting your big winners right and making sure they have sufficient weight in the portfolio. The emerging market sector is a rich investment universe for an active stock picker, an opportunity set where we can discover very exciting businesses capable of generating enormous value for our clients.

“We are looking forward to working with the Spring team as we look to grow our business with a targeted approach to distribution in the UK and throughout Europe.”