Forward Management LLC is offering investors exposure to frontier markets with the launch of its new Accessor Frontier Markets Fund.
The fund aims to produce the returns of small, less-developed equity markets by using the MSCI Frontier Market Index as a benchmark.
"This asset class represents emerging emerging markets, which are under-invested and present opportunity for investors seeking growth and diversification," said Frontier CEO Alan Reid. "Our fund offers convenient access to these untapped equity markets."
Frontier countries such as the United Arab Emirates, Vietnam, Croatia and Ukraine typically have high gross domestic product growth, discounted relative valuations and uncorrelated returns to other asset classes.
"The combination of high growth and relative low valuations makes frontier markets one of the most compelling stories in global investing," said Paul Herber, the fund's portfolio manager. "Over the long term, they can help provide investors with diversification and lower volatility."