Commentary 31 December 2020
Despite the pressure that COVID-19 has brought all over the world, the fund has outperformed the benchmark, returning 3.61% YTD in USD terms, against -4.46%.
Our proprietary model constantly assessing investment flows has given us a twofold edge:
allowed us to mitigate the mid-March fall;
signalled a great entry point in high-quality Frontier Markets companies.
In 2020 we witnessed in Developed and Emerging Markets an explosion in multiples mainly driven by the tech sector. The significant price gap formed between Frontier Markets and more developed countries is likely to narrow once price in Frontier Markets will start catching-up.
Our portfolio is better positioned not only compared with more developed markets but also with Frontier Markets peers, offering the same growth opportunity, but trading at 8x price-to-earnings ratio against 10.5x, 15.8x and 19.2x for Frontier, Emerging and Developed Markets, respectively.
Right now our fund gives you “half the price at double the growth”.
