East Capital, the Stockholm headquartered manager, has announced further details of its Frontier Markets fund, which has been launched for distribution in markets including the UK, France and Germany.
The East Capital (Lux) Frontier Markets fund combines the manager’s expertise in distinct emerging and frontier markets into a single product that covers multiple regions including Africa, the Middle East and Latin America. The strategy is focused on markets with emerging middle classes and strong consumption growth, with the investment team located in Stockholm, Moscow, Hong Kong and Dubaia exercising bottom up stock picking. The benchmark for the Luxembourg domiciled Ucits will be the MSCI Frontier Markets Index.
The fund is focused on young and fast-growing markets, with an emerging middle class and strong consumption growth. The wider investment area makes it possible to find growth in a spectrum of countries, sectors and companies, creating a high risk-adjusted yield.
The fund’s investment team is located in Stockholm, Moscow, Hong Kong and Dubai – where a new office is set to open in early 2015 subject to regulatory approval.
Peter Elam Håkansson, chairman of East Capital said: “This is one of the most exciting funds I have managed. With East Capital (Lux) Frontier Markets fund we offer investments in countries with strong growth, favourable demographics and attractive valuations. The wide distribution of investments in multiple companies, sectors and countries creates the foundation for strong capital growth with a good diversification possibility. For nearly two decades East Capital has successfully identified and invested in many companies across emerging and frontier markets which were in an early stage of development. This period has taught us valuable lessons and has given us the expertise to spot the real long-term growth drivers, trends and investment opportunities.”