A Brand New Frontier Fund
Roger Nusbaum
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There is a new frontier market closed-end fund from Morgan Stanley (MS) that has ticker FFD. Here is a little bit of info, here is a little more but for now the MS page has no info to speak of.
According to the Yahoo News release, linked above, frontier can include Bahrain, Bangladesh, Botswana, Bulgaria, Croatia, Ecuador, Estonia, Ghana, Jamaica, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Lebanon, Lithuania, Macao, Mauritius, Namibia, Nigeria, Oman, Panama, Qatar, Romania, Saudi Arabia, Serbia, Slovenia, Sri Lanka, Trinidad and Tobago, Tunisia, Ukraine, United Arab Emirates and Vietnam.
The money was just raised, so the fund owns nothing yet. It may take a while to deploy the assets and for now it has a premium to NAV to pay for the sales charge that will likely erode over the next couple of months.
Frontier will become an increasingly important asset class to access. For now there is no way to know whether FFD will be any good or not. Generically speaking this space might lend itself to active management. For example an active fund could avoid Latvia for now, which could add value versus its benchmark. Further value could then be added by adding Latvia back in at some opportune time in the future.
When the fund populates and MS discloses, I will write more about it.
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