Castlestone Management is set to launch an offshore fund based on a group of emerging market countries outside the Brazil, Russia, India, China (BRIC) quartet.

The Next 11 Emerging Markets Fund will be based on the Goldman Sachs view that a group of 11 countries could have an economic impact as great as the the G7 group of developed countries.

The group includes: Korea, Mexico, Turkey, Vietnam, Bangladesh, Nigeria, Iran, Pakistan, Indonesia, Phillippines and Egypt.

The British Virgin Islands-domiciled fund is due for launch at the beginning of the fourth quarter of 2010, after being pushed back, and has been designed as an alternative or to complement BRIC and emerging markets funds.

It will be managed by Arrash Zafari, with a minimum investment level of £10,000, $10,000 or €10,000 and will offer weekly liquidity to investors.

The Next 11 fund will seek to provide a positive absolute return by investing in equities and indices linked to the group of countries.

The fund will have a 10 per cent weighting in Korea - the most developed market - while 65 per cent will be invested in the core group of Mexico, Indonesia, Turkey and the Phillippines.

Up to a quarter of the portfolio will be invested in frontier markets, predominantly in Egypt and Vietnam, while up to 5 per cent will be invested in 'proto' markets Iran and Bangladesh.

However, the firm said the fund would have an unconstrained approach to investing.