Commentary 31 March 2019
In the first quarter of 2019 the Aristea New Frontiers fund registered a performance of + 4.9% in USD, compared to + 2.1% for the benchmark. Our different geographical breakdown and our active stock picking have allowed the fund to achieve an outperformance of + 2.8%. In particular, our behavioural finance studies have identified large capital inflows in the Middle East region and in particular in Kuwait and Saudi Arabia, the biggest contributors to overall performance.
During the quarter, Frontier Markets’ different behaviour compared to developed and emerging markets led to the creation of a spread between the asset classes. This allows us to be very confident about the near future as we expect the gap to close in favour of Frontier Markets, that continue to show solid fundamentals and growing interest from international investors.
