Investment manager GAM has launched its new Middle East-biased Star Frontier Opportunities fund.
Run by the firm's investment director Sean Taylor, GAM says the offshore Irish UCITS fund will consist of a 30 to 50 stock portfolio combining top-down macro economic analysis with bottom-up stock picking.
GAM holds country and sector selection of “key importance”, believing the worst performing stocks in the best performing countries can often outperform the best stocks in the worst countries.
Taylor says the fund offers unique diversification potential.
“One of the key characteristics of the frontier economies is that they continue to be less connected to the global market cycle and less dependent on developed market growth,” he says.
“There is also little correlation between the individual countries and also the more mainstream emerging markets.
“The fund has a significant bias towards the Middle East and the Gulf region as I believe we are seeing positive, national and regional developments there, both on a political and economic level.”
The sterling minimum investment is £6,000.IFAonline
Feasibility study due
'Let’s be bold enough to demand change'
Joint life second death option added to relieve tax burden on couples gifting assets
Backed by Schroders, LGIM and the IA
New system for funds without without three-year track record