Somerset Capital, the British boutique manager owned by Jacob Rees-Mogg, has launched a second Irish-based fund as the politician, known for a tough Brexit, further reduces its exposure to emerging markets.
The $ 8.6 billion company said the fund was created to meet the demand of international investors. The withdrawal of the UK from the EU has forced many asset managers to construct successor products in European investment centers such as Dublin and Luxembourg, in order to continue serving foreign customers.
"The structure we use is always relevant only to customers or technical considerations," said Dominic Johnson, chief executive and co-founder. "The fact that we manage billions of dollars in British structures should give you the assurance that we are not offshoring."
The new fund, which focuses on frontier markets such as Argentina and Nigeria, will pay $ 50 million from AP1, the Swedish National Pension Plan.
AP1 requested that the fund be headquartered in Ireland, a location that also made it attractive to other international investors.
The $ 37 billion pension fund would not be used if the reason for setting up a fund outside the UK was related to Brexit.
Somerset received approval from the Irish regulator in March for a £ 1.4bn version of its Emerging Markets equity fund.
Mr. Rees-Mogg was called "running" last week [the] Country "behind the scenes of fellow Conservative MP Anna Soubry.
Since Rees-Mogg became MP in 2010, he has gradually reduced his stake in Somerset by exchanging equity for a regularly increased dividend.
He owns less than the 18 percent stake held by Mr. Johnson in Somerset, but more than 15 percent, according to the financial interests of the MEP. All of the company's senior partners have committed to reduce their holdings to less than 10 percent within a decade.
Mr. Johnson described Somerset's ownership as "Thatcherism Meets Equality" and said the agreement ensured that there would be multi-generation ownership of long-term partners.
Mr. Rees-Mogg has received an average monthly payment of £ 14,983 over the past twelve months, but does not need to show his dividend. The company said that he spent an hour in his office three hours a week. In the 12 months to March last year, 21 partners shared 21.9 million pounds in dividends.
AP1 was a long-term investor in Somerset's funds. About half of Somerset's assets are managed on behalf of major US institutions, including the $ 204 billion Florida State Board of Administration, which has invested $ 900 million.
A quarter of the money that Somerset manages comes from British investors, with the remainder coming from Europe and the rest of the world.
Somerset is in the process of uncovering a US version of its 2013 frontier strategy. The new fund is capped at $ 300 million.