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The three best-performing frontier market equity teams

Citywire Middle East uncovers the leading managers in the frontier equity space.

3. Mattias Martinsson, Shamoon Tariq (pictured) & Mathias Althoff, Tundra Fonder

Fund Managed: Tundra Sustainable Frontier Fund A SEK

Three-year total return: 12.1%

Among the top three of those generating the highest returns from frontier markets is Tundra trio Mattias Martinsson, Shamoon Tariq and Mathias Althoff.

Focusing on the next generation of EMs, such as Vietnam, Bangladesh, Sri Lanka, Pakistan, Egypt and Nigeria, the fund is based on an environmental, social and governance (ESG) approach and complies with the UN Global Compact with regards to human rights, labour rights, corporate governance and environmental impacts.

The fund was launched in 2013 and currently holds its largest weighting in Egypt (16%), followed by Nigeria and Pakistan. In terms of sector allocation, the portfolio’s biggest exposure is to financials (44%).

The best-performing stocks in November, according to the latest fact sheet, were Grupo Financiero Galicia, which returned 19.4% and Cairo Invest & Real Estate at 16.2%. While the worst performers for the month were Hoa Sen Group, which lost 28.3%, and Hoa Phat Group, which was down 17.5%.

3. Mattias Martinsson, Shamoon Tariq (pictured) & Mathias Althoff, Tundra Fonder

Fund Managed: Tundra Sustainable Frontier Fund A SEK

Three-year total return: 12.1%

Among the top three of those generating the highest returns from frontier markets is Tundra trio Mattias Martinsson, Shamoon Tariq and Mathias Althoff.

Focusing on the next generation of EMs, such as Vietnam, Bangladesh, Sri Lanka, Pakistan, Egypt and Nigeria, the fund is based on an environmental, social and governance (ESG) approach and complies with the UN Global Compact with regards to human rights, labour rights, corporate governance and environmental impacts.

The fund was launched in 2013 and currently holds its largest weighting in Egypt (16%), followed by Nigeria and Pakistan. In terms of sector allocation, the portfolio’s biggest exposure is to financials (44%).

The best-performing stocks in November, according to the latest fact sheet, were Grupo Financiero Galicia, which returned 19.4% and Cairo Invest & Real Estate at 16.2%. While the worst performers for the month were Hoa Sen Group, which lost 28.3%, and Hoa Phat Group, which was down 17.5%.

2. James Bannan & Hans-Henrik Skov, Coeli

Fund Managed:  Coeli SICAV I - Frontier Markets I EUR Cap

Three-year total return: 20.4%

Ranking in second place for their strong returns in the frontier market space are Swedish asset manager Coeli’s James Bannan & Hans-Henrik Skov.

The Citywire A-rated duo have managed the fund since its launch in 2014 and run a total of $598 million in assets across the strategy.

In terms of country allocation, the portfolio’s largest weighting is to Vietnam (15.5%), followed by Goergia (9.8%) and Bangladesh (9.1%). When it comes to sector exposure, financials makes up nearly half the portfolio at 41.7%.

1. Dominic Bokor-Ingram (pictured) & Stefan Böttcher, Fiera Capital

Fund Managed: Magna New Frontiers N EUR

Three-year total return: 39.4%

Leading the way in the frontier markets equity sector is Citywire AAA-rated duo Dominic Bokor-Ingram & Stefan Böttcher from Fiera Capital.

Speaking to Citywire Middle East's sister site, Citywire Selector, in September, Bokor-Ingram said a driving factor for performance is that the uncertain outlook for many of the world’s more developed economies is pushing investors to the frontier.

‘It’s very difficult to find growth at the moment. As a rule, company earnings growth drives stock market returns and the best place to find that momentum is in economies that are growing.

'At the moment the best examples of such growth are probably in frontier markets. If you look at the issues facing emerging markets such as Brazil, Russia, China, Turkey or South Africa, it’s clear there aren’t many pockets of growth in the world.

‘Saudi can be up 16%, for example, while emerging markets are down 5%. That’s because Saudi’s development is driving its stock market growth, not what Trump is saying or what the dollar is doing,’ he said.