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Schroders launches Frontier Markets Equity fund

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Schroders is offering investors access to some of the most dynamic and fastest growing economies in the world with the launch of the Schroder ISF Frontier Markets Equity fund.

 

The fund, which is benchmarked against the MSCI Frontier Markets Index (the Middle East constitutes almost 60% of the index), is managed by Allan Conway, Head of Emerging Market Equities and Rami Sidani, head of MENA. Both fund managers are also responsible for Schroder ISF Middle East. Rami is based in Dubai and they are supported by analysts based in Dubai, Europe, Latin America and Asia.

Schroders believes here is a strong rationale for investing in frontier markets, which have a combined nominal GDP of USD 2.4 trillion (3.9% of global GDP), second only to China, and comprise 12% of the world’s population, of which almost 60% is under 30 years of age. Labour costs are extremely competitive and natural resources abundant. Furthermore, the investment opportunities are excellent as frontier markets are under-owned, market liberalisation is accelerating and valuations are currently attractive (41% off their peaks of 2008). In a global macro environment dominated by uncertainties, frontier markets’ low correlation with global markets also offers investors extensive diversification benefits.

“Investors are increasingly seeking to establish a strategic allocation to emerging markets rather than using them tactically due to an increase in risk appetite, which we believe should lead to greater focus on the frontier markets," says Allan Conway, Head of Emerging Market Equities at Schroders. "The launch of the Frontier Markets fund strengthens our global emerging markets proposition and offers investors access to some of the fastest growing economies in the world as well as significant diversification benefits. This highlights our continued commitment to providing clients with innovative and compelling long-term investment opportunities.”

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