Thoughts from our Frontier Markets Team – Smaller Emerging Markets: a Wealth of Opportunities

The Smaller Emerging Markets Strategy (“SEMS”) was launched on 6th January 2021 with a mandate to generate alpha from investing in emerging and frontier market equities globally, outside of the largest seven emerging markets as defined by MSCI. Seeded with capital from the Co-Portfolio Managers and investors, aligning everyone’s interests in the future success of this Strategy.

In the first seven months of performance the Strategy has started to capitalise on the alpha opportunity presented by a set of circumstances that is likely to remain in place for some time and become even more conducive to the Strategy and investment process. The chart below puts performance since launch in the context of the MSCI Emerging Markets Index and the Strategy’s Custom Benchmark (all emerging plus frontier markets minus the largest seven emerging markets).