Investing in "Frontier Markets"

DUS

Hello,

I consider to start investing into so-called "new frontier markets" via funds such as the Templeton Frontier Markets Fund.

Unfortunately, I couldn´t find more funds like the Templeton one and wondered if you know of other funds, ETFs etc. which invest in these markets. If you do, I´d appreciate if you let me know. Thank you!

DUS

cheerfulcat

There are some investment trusts listed on the AIC website which might be similar.

DUS

Thank you, cheerfulcat!

I had a brief look and the funds listed seem to be the "standard" EM funds which have a broader investment approach covering all emerging markets in the world (incl. BRIC) rather than focussing on the markets such as Nigeria and the other "Tier 2 and Tier 3" countries.

I´d like to combine one of the broad EM funds (like the Aberdeen EM fund) with a speciality fund covering the "upcoming emerging markets". Is the Templeton really the only one available for my SIPP/ISA?

DUS

cheerfulcat

You could try Hargreaves Lansdown's list, here.

ozzage

Sorry to bump this but was just looking myself for something similar and found this:

Sarasin EmergingSar - New Frontiers

http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/s/sarasin-emergingsar---new-frontiers-gbp-income

Linton

DUS wrote: »

Hello,

I consider to start investing into so-called "new frontier markets" via funds such as the Templeton Frontier Markets Fund.

Unfortunately, I couldn´t find more funds like the Templeton one and wondered if you know of other funds, ETFs etc. which invest in these markets. If you do, I´d appreciate if you let me know. Thank you!

DUS

Try looking on http://www.trustnet.com

ozzage

Unfortunately it's not really that simple. There is no category for Frontier funds. You can go through all the emerging markets ones looking for some with a decent % in frontier countries but the results are disappointing as most only have a few % and the rest in BRIC and the other big boys. You then have to check offshore, specialist...

This is a sector which is poorly supported with offerings, especially here in comparison to the US.

Reaper

ozzage wrote: »

Sorry to bump this but was just looking myself for something similar and found this:

Sarasin EmergingSar - New Frontiers

Have a look at where it invests - 28% of the total apears to be in a single stock and it isn't even in a frontier market - it's EON AG, the German utilities company. How odd.

sabretoothtigger

Not sure what a frontier market is but try looking at the Schroeder fund as they invest in all sorts of places

Vietnam, sri lanka, vietnam and iraq or Kuwait would qualify?

ozzage

Reaper wrote: »

Have a look at where it invests - 28% of the total apears to be in a single stock and it isn't even in a frontier market - it's EON AG, the German utilities company. How odd.

Yeah I also noticed that afterwards but I don't get it.

According to the factsheet from December

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/Documents.aspx?type=packet_fund_class_doc_factsheet_private&user=hl_web_test&sedol=7265255

Top ten holdings are:

Sarasin Intl Fds GCC Equity Opp (USD) - A 7.51%
Citigroup Gl Mks Inc MSCI Peru 02.09.10 5.44%
ABN Amro Bank NV 18.08.10 5.41%
Barclays Bank TALLIN STK EXCH 27.08.10 5.26%
Deutsche Bk AG London Call 27.08.19 5.07%
Deutsche Bk AG London Call USD 14.08.10 5.05%
Mango Capital Fund USD 5.04%
Barclays Bank ROM. TRADED IDX 27.08.10 4.85%
Citigroup Gl Mks Hgs MSCI 05.09.12 3.44%
HSBC Bank Cer HSBC SAUDI Eq Idx Fd 21.11.11 3.32%

which to be honest still confuses me but I suspect that's just down to my lack of knowledge

ozzage

There's also this fund

http://www.advance-emerging.com/detailsub.php?page=2&pageid=0&pagesub=64

AFMF is a closed end fund, traded on the Alternative Investment Market of the London Stock Exchange and listed on the Channel Islands Stock Exchange. The Fund is domiciled in Guernsey. It was launched in 2007 and remains one of the only frontier market products accessible to UK based investors. It invests in frontier markets globally, which are generally defined as those markets that are less developed and liquid even than emerging markets.

From the prospectus:

The objective of the Company is to generate long-term capital growth for its Shareholders. The Investment
Manager intends to achieve this by investing in a diversified portfolio of funds and other investment
products.
Investee funds may include closed and open-ended funds, exchange traded funds, structured products,
limited partnerships and managed accounts. The number of investments in the portfolio will vary depending
on the availability of attractive opportunities but, under normal market conditions, will fall within a range of
20 to 50.