The East Capital (Lux) Frontier Markets Fund, launched on 15 December, invests in public companies globally, and is registered for public distribution in the UK, France, and Germany.
The Luxembourg-domiciled fund, which is UCITS-compliant, forms part of the company’s latest strategy of expanding its investment universe to include Africa, the Middle East, and Latin America.
It will invest into a broad spectrum of countries, sectors, and companies in off-index countries, and “apply bottom-up stock-picking through a fundamentally research-driven, long-term and local approach”.
The company says this wider investment area will “make it possible to find growth in a spectrum of countries, sectors, and companies”, which will create a high, risk-adjusted yield.
The fund’s investment team is located in Stockholm, Moscow, Hong Kong and Dubai, where a new office will open later this year.
A retail and institutional version of the fund will be launched, with the former having a 2% management fee, and the latter 1.25%.
The retail version has a minimum investment of €200, and the institutional has a minimum investment of €2m.
Peter Elam Hakansson, chairman of East Capital, said: “The wide distribution of investments in multiple companies, sectors and countries creates the foundation for strong capital growth with a good diversification possibility.”
Formed in 1997, East Capital is a specialist in emerging and frontier markets. It is headquartered in Stockholm.
In January last year, the company launched the Luxembourg-registered China A-Shares Fund, to be managed out of its Stockholm HQ and Hong Kong.
Partner and co-founder Karine Hirn leads the fund, which has a brief to invest in renminbi-denominated A-shares listed on China’s mainland stock exchanges in Shanghai and Shenzhen.
