Progressive Developing Markets has announced it is to place $50m-100m of new shares in its Advance Frontier Markets fund. The closed-ended fund raised $85m at its launch in June last year but Progressive now wants to boost its size to increase the fund's appeal to institutions and funds of funds.
The fund has produced a net asset value return of 8.1% since launch by investing across some of the least developed emerging markets. The stockmarket capitalisation of this niche sector, which covers over 100 countries, is approximately $350bn, equivalent to approximately 2% of the mainstream emerging markets’ value. Frontier markets include countries such as Bangladesh, Botswana, Croatia, Kuwait, Mauritius and Vietnam.
Commenting on the new tranche of shares, Dr Slim Feriani, managing director and chief investment officer at Progressive Developing Markets, said: “The fund has attracted considerable investor and media interest as our experienced investment management team has delivered NAV growth during a time of great uncertainty and volatility. We remain confident of our ability to identify further untapped opportunities in frontier markets.”
The new shares are expected to be admitted to trading on Aim and listing on the Channel Islands Stock Exchange on 6 June 2008.
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