Driehaus Capital Forms Driehaus Frontier Emerging Markets FundDriehaus Frontier Emerging Markets Fund, the new mutual fund offering provides institutional investors with dedicated exposure to high growth frontier market companies, has been launched by Driehaus Capital Management.
The fund is managed by Portfolio Manager Chad Cleaver, CFA, who also serves as the lead portfolio manager of the Driehaus Emerging Markets Small Cap Growth Fund and as co-portfolio manager of the Driehaus Emerging Markets Growth Fund. These funds have held equity allocations to frontier market countries since 2008 and 1998, respectively. The fund leverages existing Driehaus emerging markets investment research while providing the emerging markets team, and the wider Driehaus research platform, with the benefits of additional market insights into the frontier markets universe.
According to Mr. Cleaver, "Frontier markets are an increasingly attractive opportunity set for investors. The investment universe is comprised of companies that are often under-owned by investors while supported by strong demographics, increasing direct investment, and growing local demand. Further, frontier markets serve as a strong diversifier as frontier market equities have a fairly low correlation to other segments of the equity market."
The diversification benefits of a frontier market allocation are evident when comparing the correlations between frontier markets to other segments of the equity universe. For the 10-year period, the highest correlation for frontier markets is 0.67 to global (ex-US) large cap equities. This is superior to even the lowest correlation between any other two segments of the equity universe.Source: PR Newswire