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The five fastest growing frontier market funds revealed

Citywire Global revisits the biggest players in this growth sector to uncover which has shown the strongest increase in assets over the past year.

Full throttle in the frontier

The furore surrounding frontier market equity funds may not be as high as it was 12 months ago but the expectation of these new emerging markets to provide long-term growth remains a hot topic of discussion among investors.

One year ago Citywire Global shone a light on the largest players in this burgeoning sector to uncover which funds were packing the biggest punch in asset terms, as well as those leading the pack when it came to performance.

Twelve months on, Citywire Global revisits this 10-strong list to uncover the five fastest growers over the intervening period. This countdown uncovers which funds have seen the greatest increase in assets since the end of April 2014.

Note: Funds drawn from the Citywire database. Countdown is done in order of current AuM, which is supplied on request from the fund management group or drawn from factsheets or Lipper IM data.

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Full throttle in the frontier

The furore surrounding frontier market equity funds may not be as high as it was 12 months ago but the expectation of these new emerging markets to provide long-term growth remains a hot topic of discussion among investors.

One year ago Citywire Global shone a light on the largest players in this burgeoning sector to uncover which funds were packing the biggest punch in asset terms, as well as those leading the pack when it came to performance.

Twelve months on, Citywire Global revisits this 10-strong list to uncover the five fastest growers over the intervening period. This countdown uncovers which funds have seen the greatest increase in assets since the end of April 2014.

Note: Funds drawn from the Citywire database. Countdown is done in order of current AuM, which is supplied on request from the fund management group or drawn from factsheets or Lipper IM data.

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5. Morgan Stanley Galaxy Fund Frontier Emerging Markets

Fund manager: Tim Drinkall

Showing modest growth during the time frames is Morgan Stanley manager Tim Drinkall, who has overseen a modest increase in assets over the past 12 months.

The Citywire AA-rated manager has successfully ridden a period of pronounced difficulty for the sector. His 12 month figures show a loss of 4.2% in US dollar terms but this was at a time when the average manager in the sector fell nearly 7%.

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4. Aberdeen Global – Frontier Markets Equity

Fund manager: Devan Kaloo

Emerging markets expert Devan Kaloo has pushed beyond the $300 million mark in his dedicated frontier market equity fund with an admirable increase in assets over the past 12 months.

Much like in the previous analysis, Kaloo, who is named manager across 15 funds and mandates in total, retains a diverse portfolio with no one country dominating his geographic allocation. The largest two bets are Nigeria (15%) and Kenya (15.4%), while consumer staples accounts for nearly 30% of the fund.

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3. Coronation Africa Frontiers

Fund manager: Peter Leger

The second Citywire AA-rated manager on the list is Coronation’s Peter Leger. The South Africa-based specialist has seen an impressive increase in the past year which, in a wider context, reflects an almost doubling of capacity since April 2013.

According to the most recent fund update, data February 2015, Leger shows a strong support for the Nigerian market, which makes up almost one-quarter of overall geographic exposure. This is while consumer staples and financials combined account for over one-half of total sector bets.

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2. Tundra Opportunities Fund

Fund manager: Mattias Martinsson

While Mattias Martinsson’s fund may not be the heaviest hitter in this hot sector, he has witnessed a huge surge of interest for the Sweden-domiciled strategy. The Tundra Opportunities Fund is one of four dedicated emerging market funds run by the boutique.

Echoing a pronounced overlap with the firm’s country-specific Pakistan fund, Martinsson has 30% allocated to the Pakistani market. This has hampered short-term performance but his latest market commentary stresses the increasing fundamental strength witnessed in Pakistan over recent months.

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1. Schroder ISF Frontier Markets Equity

Fund manager: Alan Conway & Rami Sidani

Experiencing an explosive growth in interest over the past year, the Schroder ISF Frontier Markets Equity fund has risen well above the $1 billion mark since the previous analysis.

This uptick is perhaps a by-product of the fact Alan Conway & Rami Sidani fund is one of the few blockbuster funds in this specialist sector yet to have imposed investment restrictions.

The 55-stock fund is overweight financials, which makes up nearly 60% of sector exposure, while Kuwait (20%) and the United Arab Emirates (18%) are the two largest country positions. The National Bank of Kuwait is the single biggest bet, accounting for 9.2% of the overall fund.

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Related Fund Managers

Peter Leger
Peter Leger Average Total Return:
-6.27%
3/20 in Equity - Africa (Performance over 3 years)
Mattias Martinsson
Mattias Martinsson Average Total Return:
8.5%
3/29 in Equity - Frontier Markets (Performance over 3 years)
Tim Drinkall
Tim Drinkall Average Total Return:
-11.02%
21/29 in Equity - Frontier Markets (Performance over 3 years)
Devan Kaloo
Devan Kaloo Average Total Return:
25.83%
107/504 in Equity - Global Emerging Markets (Performance over 3 years)
Allan Conway
Allan Conway
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