Commentary 31 December 2019
In 2019, the fund returned +2.31% compared to the -2.10% of the benchmark (FTSE Frontier Markets Index). We expect the fund to performe well in 2020, since Frontier Markets are supported by many positive factors:
- A high dividend yield at around 4%;
- Increasing economic growth;
- P/E of less than 10x;
Moreover, low correlation levels of Frontier Markets with both Developed and Emerging Markets indicate that these countries represent a great diversification opportunity for global equity investors.