VAM Funds has unveiled a new Luxembourg-domiciled frontier markets equity fund.
Dubbed as VAM Frontier Markets Fund, the UCITS IV fund will invest in companies that are based or doing business in the 33 MSCI Frontier Market countries.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Adopting an all-cap strategy, the fund will typically hold between 60 and 90 stocks to provide exposure to a portfolio of underlying companies and economies.
The fund will be available to institutional fund buyers, including discretionary fund managers, wealth managers, funds of funds, private banks, pension funds and family offices.
The Frontier Markets Fund will be managed Chad Cleaver, who currently runs the VAM Emerging Markets Growth fund. He is also the lead portfolio manager of Driehaus’s emerging markets small-cap growth strategy.
Additionally, Driehaus Capital Management, a partner of VAM Funds, will serve as an investment manager for the new fund.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIt achieves significant capital appreciation by outperforming the MSCI Frontier Markets Index and is suitable for investors seeking long-term growth through capital appreciation and those who wish to diversify their investment portfolios.
Nigel Watson, sales director of VAM, said: "The VAM Frontier Markets Fund will provide a dedicated investment vehicle to invest in growth companies in what are already considered high growth markets; a combination which has the potential for delivering very attractive returns.
"Additionally, because frontier markets have historically provided lower correlations to most segments of the equity and fixed income asset classes, another benefit is that the fund should enhance diversification to an investor’s overall asset allocation," he added.
Cleaver said: "Frontier markets maintain remarkable demographics and strong future growth potential. Many consumer-related industries are at early stages of development and increasing local demand – such as in banking services, retail merchandising, mobile penetration and auto sales – which is a significant driver of growth.
"At the same time, these markets have small market capitalisation-to-GDP ratios relative to developed and emerging markets, suggesting an undervalued opportunity set," he added.
