The Woo Group To Create Aggressive Frontier Market Fund
Frontier Markets have surged this year, and will continue to increase in value. The Woo Group is creating a fund to capitalize on these new opportunities
Online, July 19, 2013 (Newswire.com) - CEO Jason Woo at The Woo Group this morning announced the Company is to develop an aggressive managed fund comprised of frontier market equity. "Whether the fund is to be comprised of single equities only, or various asset groups is yet to be decided" said Mr Woo. Further specific information on the fund is to be made available to the investment community in September.
Frontier markets are a subset of the emerging markets, characterized as having smaller market capital and less liquidity than the more developed emerging markets. When a country is given the frontier label, it is believed that in time it will gain liquidity and exhibit similar risk and return characteristics to the more developed emerging markets. The majority of frontier markets are located in the Middle East, Eastern Europe, and Latin America. In the coming years, these markets will synchronize like the emerging markets of India, China, and Russia.
CEO Mr Jason Woo said "We believe at The Woo Group that investing in frontier assets will help to diversify our clients' portfolios and reduce overall risk". There are limited well managed options for investors in frontier markets; The Woo Group wants to fill this gap in the investorĀ“s market. This type of investment is for clients who are looking for a long term investment, more than ten years, and not adverse to risk.
Since the beginning of the year, frontier markets have been outperforming emerging markets, and are up more than 20% according to MSCI Frontier Market Index.
"We have identified a number of projects in frontier markets that we expect to be extremely profitable for our clients. I am most excited by the potential of our Iraqi oil wells, and our South African diamond mines. As we as a community invest in frontier markets commodities, we also need to invest in the infrastructure of these developing nations. Current plans include a number of green power plants and telecommunication networks. These will not only be profitable, but ethical investments as well," said Head of Investment Analysis, Dr Lian Cheung.
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