PSigma Investment Management chief investment officer Tom Becket is introducing frontier markets exposure into his £13m balanced managed fund as he looks for growth amid the bleak global economic outlook.
Becket says he is adding the £35.6m GAM frontier opportunities equity hedge fund, which primarily invests in the Middle East. He says: “I think particularly the Middle East and consumer companies in that area have sensational value. Companies have a 20 per cent earnings growth and price to earning ratios of 10 times next year’s earnings are quite common.”
Becket has an 8 per cent cash holding in the fund. He says: “There are not many safe-haven assets out there at the moment but cash is one of them.”
Last week, Money Marketing reported that Templeton Emerging Markets Group executive chairman Mark Mobius is considering adding North Africa exposure into his global emerging market funds.
Bestinvest senior adviser Adrian Lowcock says: “Frontier markets are becoming the new emerging markets and are coming to the forefront of investors’ attention.”