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East Capital launches frontier markets fund

East Capital has launched a new frontier markets fund focused on “young and fast-growing” markets with an emerging middle class and strong consumption growth.

The East Capital (Lux) Frontier Markets Fund, launched on 15 December, invests in public companies globally, and is registered for public distribution in the UK, France, and Germany.

The Luxembourg-domiciled fund forms part of the company’s latest strategy of expanding its investment universe to include Africa, the Middle East, and Latin America.

It will invest into a broad spectrum of countries, sectors, and companies off-index countries, and “apply bottom-up stock-picking through a fundamentally research-driven, long-term and local approach”.

The company says this wider investment area will “make it possible to find growth in a spectrum of countries, sectors, and companies”, which will create a high, risk-adjusted yield.

The UCITS fund’s investment team is located in Stockholm, Moscow, Hong Kong and Dubai, where a new office will open later this year.

A retail and institutional version of the fund will be launched, with the former having a 2% management fee, and the latter 1.25%.

The retail version has a minimum investment of €200, and the institutional has a minimum investment of €2m.

Peter Elam Hakansson, chairman of East Capital, said: “The wide distribution of investments in multiple companies, sectors and countries creates the foundation for strong capital growth with a good diversification possibility.”

Formed in 1997, East Capital is a specialist in emerging and frontier markets. It is headquartered in Stockholm.

In January last year, the company launched the Luxembourg-registered China A-Shares Fund, to be managed out of its Stockholm HQ and Hong Kong.

Partner and co-founder Karine Hirn leads the fund, which has a brief to invest in Renminbi-denominated A-shares listed on China’s mainland stock exchanges in Shanghai and Shenzhen.

Part of the Mark Allen Group.