Russell Investments has launched the Russell Frontier Markets Equity Fund, which will invest primarily in emerging markets at the forefront of development. However, the fund also has the license to invest some money in companies stationed in more developed nations but that have a significant proportion of operations in frontier markets.
The fund is a bank-maintained collective investment fund maintained by Russell Trust Co. that is only available through defined contribution plans.
The frontier markets provide a fresh set of options for investors looking to find new companies that are not widely researched, said Scott Crawshaw, portfolio manager of Russell Investments. The frontier markets offer return potential for patient investors, but there are liquidity and trading issues that need to be recognized and understood.
Russell Director of Global Equity Ron Dugan added: The frontier markets look similar in many ways to the emerging markets of the 1980s and 1990s. As more investors look for new sources of return, the frontier markets will open new avenues in the global world of investing.
Areas the fund is likely to invest in include: Africa, the Caribbean, Eastern Europe, southeast Asia and the Middle East.