FMG said the fund, which is structured as an Oeic and currently offers a dollar share class, will invest in a portfolio of equity and fixed income investments in regions including Latin America, the Middle East, Africa and Asia. At launch, this regional split will be: Africa 18%, Asia 36%, Latin America 14%, Middle East 12%, emerging market fixed income 20%.
Targeting “superior” long term returns, FMG said the fund will give investors first time access to markets which are not accessible via BRIC or emerging market funds. FMG added that it will focus on the most liquid assets and will be managed incorporating a top-down analytical approach.
Arild Johansen, FMG partner, said: “This fund offers investors efficient exposure to the fast growing and exciting frontier economies of the world.
“Today’s young people will be tomorrow’s consumer and producers. Frontier Markets constitute 40% of the world’s 14 to 25 year olds, 15% of the world’s GDP but only 3% of the world’s stock markets. Additionally, Frontier Markets valuations are very attractive versus Emerging and Developed Markets.”
The fund is available on a number of international life company platforms.