New frontier markets fund from Renaissance

Renaissance Asset Managers (RAM) has announced the launch of a Frontier Markets fund to invest in markets with a forecast GDP growth of over 4%.

Renaissance Asset Managers, the investment management arm of Renaissance Group, said the new fund will invest in high growth frontier markets. Argentina, Egypt, Indonesia, Kenya, Nigeria, Pakistan, Philippines, Thailand, Ukraine and Vietnam will form the core of the fund, and are expected to make up between 85% and 100% of the portfolio at any point in time.

The fund is rated A by Standard & Poor’s fund management, in its Luxembourg-based Ucits IV SICAV fund range. The fund will run as an actively managed access vehicle giving investors entry into frontier markets which would otherwise be difficult to evaluate and source. The Fund is open to both institutional and qualified private retail clients.

RAM has selected countries based on criteria which include a population in excess of 35 million, expected average annual GDP growth of 4% over the next decade, GDP per capita below $6,000, underdeveloped markets and substantial demographic and resource potential.

Commenting on the launch, Sven Richter, head of Frontier Markets, said: “People are making a lot of noise about frontier markets. While the developed world is struggling to grow at low single digit GDP rates, frontier markets are powering ahead at rates above 5% per annum over the next decade. From new mines to farms, these markets are helping to supply the world’s demand for goods, whilst growing their own consumer bases – people are getting wealthier and urbanising. The potential is huge yet largely untapped.”

Adrian Harris, head of Distribution and Investor Relations, said: “At a time when investors are struggling to find returns in developed markets, capital is being drawn to the compellingly straightforward economic opportunities that frontier markets present.”

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