Renaissance AM launches frontier markets fund

Renaissance Asset Managers (RAM) has today launched a fund aimed at tapping the growth potential and increasing urbanisation of frontier markets.

The Renaissance Frontier Markets fund will focus on an investment universe of 25 nations and be managed by the firm’s head of frontier markets, Sven Richter.

Out of the 25 nations, RAM has identified a core of ten countries which will make up between 85 and 100% of the portfolio.

These are: Argentina (pictured), Egypt, Indonesia, Kenya, Nigeria, Pakistan, Philippines, Thailand, Ukraine and Vietnam. All ten nations are viewed as having strong growth potential as well as increasing levels of urbanisation and consumer demand.

In addition, the Luxembourg-domiciled fund will also seek to capitalise on development opportunities in infrastructure, telecoms and commodities in these key markets.

Commenting on the launch of the fund, Richter said: ‘People are making a lot of noise about frontier markets. While the developed world is struggling to grow at low single digit GDP rates, frontier markets are powering ahead at rates above 5% per annum over the next decade.’

‘From new mines to farms, these markets are helping to supply the world’s demand for goods, whilst growing their own consumer bases – people are getting wealthier and urbanising.’

The launch of the Frontier Market fund is the latest development for Renaissance in what has been a busy period so far this year.

In January, Renaissance added to the Eastern Europe fund it purchased off Griffin before Christmas and took over the running of two more emerging Europe mandates.

Further to this, it also named Barbara Rupf Bee as CEO and appointed chief investment officer Plamen Monovski as president of the firm.