American investment giant T. Rowe Price has added to its offerings with the launch of the Frontier Markets Equity fund. The fund aims to target long-term growth potential of many untapped global outposts.
The fund is able to invest across the entire frontier market, which includes the MSCI Frontier Markets index and beyond. The MSCI index alone is as widespread as its Emerging Markets counterpart, and covers countries in the Americas, Europe, Africa, the Middle East and Asia.
The group has launched the fund at a time when it expects frontier markets to be the next engine of global growth.
It is Luxembourg-domiciled and built as a Sicav. It will be managed by Oliver Bell, who already runs funds such as the $214m Africa and Middle East fund.
The fund has a minimum investment of €15,000 (£11,000) or equivalent on its adviser share class, with an investment management fee of up to 1.2 per cent.
www.troweprice.com
Comment:
Frontier markets have been tipped as the next great growth story. But as the region is so diverse, it has been difficult to see how well it has been doing overall.
T. Rowe Price already has 31 equity and 16 fixed income investment professionals focused on emerging and frontier markets, so it is not a new market to the group.
There are many well-run companies within the space and many consistently deliver growth. The economic growth in the many regions will be underpinned by a young and growing population. The demographics of the space and improving social trends make a strong runway to start, as even small improvements in the markets can yield significant growth comparatively.
This fund could be a solid option, challenging the likes of BlackRock and Investec who have already made their names in the space - although this fund does not come cheap.
