The Ucits IV compliant Renaissance Frontier Markets Fund will target a number of “high growth” countries, specifically those with GDP forecast to grow at over 4% over the next 10 years.
RAM, which is part of the emerging markets investment firm Renaissance Group, said it has identified at least 25 countries which fall within its high growth criteria. From these 25 countries the fund management group said it has selected 10 in the fund will invest, creating what it describes as a “focused yet diversified” portfolio. These countries include: Argentina, Egypt, Indonesia, Kenya, Nigeria, Pakistan, Philippines, Thailand, Ukraine and Vietnam.
Sven Richter, head of frontier markets at RAM, said: “People are making a lot of noise about frontier markets. While the developed world is struggling to grow at low single digit GDP rates, frontier markets are powering ahead at rates above 5% per annum over the next decade.
From new mines to farms, these markets are helping to supply the world’s demand for goods, whilst growing their own consumer bases – people are getting wealthier and urbanising. The potential is huge yet largely untapped.”
The specific criteria for a country’s inclusion in the fund’s universe is:
- Population in excess of 35 million
- GDP growth over the next decade expected to average over 4% per annum
- GDP per capita below US$ 6,000
- Markets are relatively undeveloped
- Substantial potential in terms of a young population, attractive resources and the ability to develop based on these criteria
The fund is open to both private qualified investors and institutions.
