Deutsche Asset & Wealth Management has launched the Deutsche Emerging Markets Frontier Fund, which seeks to capitalise on compelling investment opportunities in emerging market frontier countries.
"As investors continue to increase their exposure to international equities, many are looking to smaller markets to diversify their portfolios and potentially enhance returns. We are excited to launch the Deutsche Emerging Markets Frontier Fund at a time when emerging and frontier-market countries are experiencing strong economic growth,” says Robert Kendall, managing director, head of retail distribution for the Americas, Deutsche Asset & Wealth Management.
The fund combines top-down macroeconomic analysis with comprehensive fundamental research, in order to strategically allocate to emerging-market frontier countries. The fund’s managers will be making allocations based upon significant catalysts for economic growth and attractive risk-return potential, such as:
• Large, young, expanding populations with increasing per capita gross domestic product and rising domestic consumption needs
• Low correlations and volatility compared to traditional emerging markets
• Potentially higher liquidity and greater investment flexibility vs. a solely frontier market-based approach
The fund is managed by Sean Taylor, head of emerging market equities at Deutsche Asset & Wealth Management, who has over 20 years of experience in emerging-market research and investments.
Taylor says: “Unlike many traditional emerging- or frontier-market portfolios that utilise a narrow single-index universe, our fund will leverage Deutsche Asset & Wealth Management’s global expertise and presence in key local markets to actively manage a broader investment universe, identifying attractive investment themes, structural trends and noteworthy companies.”
The fund will track the MSCI Frontier Emerging Markets Index, which includes large, mid and small cap representation and covers most of the investable equity universe across all frontier markets countries. The fund will also actively select countries to track in the MSCI Emerging Markets index, which captures large and mid-cap representation across 23 emerging markets.