Tundra Fonder AB, Birger Jarlsgatan 33, 111 45 Stockholm, Sweden, Tel. +46 8 5511 4570, www.tundrafonder.se
TUNDRA FRONTIER OPPORTUNITIES FUND
Class A (SEK)
Frontier markets – the new emerging markets
Emerging markets have proven an amazing journey for many
investors – they provided a return of 157% during the
period 2004-2013. There is every indication that a new
category of countries, known as frontier markets, are now
well placed to do the same over the next 10-20 years.
Frontier markets are countries with stock markets that are
difficult for foreigners to access or countries that are at a
stage of economic development below the level of traditional
emerging countries like China, Brazil and Russia.
Why invest in the Tundra Frontier Opportunities Fund?
• Some of the world’s fastest-growing economies
• Young populations and large
• Urbanisation driving expansion of infrastructure
• Most international investors have not yet got around to
investing
What are the risks?
• Limited turnover on local stock markets
• Inexperienced democracies
• Weaker corporate governance than in the West
• High costs for trading in equities
second category of country. This means that the fund
differs from most other global frontier market funds – given
that many Gulf states today have a GDP/capita in line with
or higher than in West European countries, the potential for
growth appears significantly more attractive in the countries
that are facing the opportunity of growing from a low level.
Driving this growth is a young working population with a low
uptake of consumer goods and a wave of urbanisation, with
the associated investment in infrastructure. Considering
that the average age in countries such as Bangladesh,
Pakistan and Nigeria is below 25, compared to Western
Europe 40, and that there are fewer than 100 cars/1,000
inhabitants in these countries, compared to just over 600
in the West. The capital markets are also underdeveloped,
with limited transparency to analysts and few foreign
investors, which means less competition for future capital
growth. With more than 10% of the world's population but
only 1% of total global market capitalisation, the potential
for growth seems substantial.
How do I invest?
The first category is dominated by the Gulf states like Qatar,
Kuwait and the United Arab Emirates, while Nigeria,
Pakistan, Bangladesh, Sri Lanka and Vietnam are the largest
countries in the second category. Tundra Frontier
Opportunities is an equity fund that invests mainly in the
You can purchase Tundra Frontier Opportunities fund
directly from Tundra Fonder. To become a client you will
need to complete a registration form (available to download
from our website at www.tundrafonder.se or to order by
phone +46 8 551 145 70). You can also find the fund’s
key investor information document and prospectus on our
website.
Mattias Martinsson, Portfolio manager (experience
from emerging and frontier markets since 1996)
Return since inception
Fund facts
175
165
155
Inception date:
April 2, 2013
Inception price:
100 kr
145
Management fee/annum:
2.5%
135
Performance fee:
0.0%
115
Entry/exit charge
0.0% / 0.0%
105
Risk level:
7 of 7
125
95
2013-04-02
2014-04-02
Tundra Frontier Opportunities
2015-04-02
2016-04-02
MSCI FM ex GCC Net Index
IBAN:
BIC:
SE83 5000 0000 0585 1107 8355
ESSESESS
Source: Bloomberg, Tundra Fonder
Publishing date: August 31st, 2016
The value of the capital invested in a fund may either increase or decrease in value and it is not certain that you will be
able to recover all of your investment. Historical return is no guarantee of future return. The Full Prospectus, KIID etc.
are available on our homepage. You can also contact us to receive the documents free of charge.