On May 6^th, Tundra Vietnam Fund celebrated three years. It has been a hectic period since the launch in 2014 of the first actively managed Vietnam Fund in the Nordics – foreign ownership limitations on the Vietnamese equity market have been partially removed in a move to reform the market, the fund has returned close to 60% (in SEK), double the benchmark index return, and Tundra has opened a research office in Ho Chi Minh City. It is our belief that this is just the beginning of an exciting journey in the country’s economic history.

• Frontier markets rose 0.7% (SEK) during April and have hence returned 8.1% YTD (MSCI Frontier Markets xGCC Net).
• Vietnam fell victim to profit taking after previous months’ positive return. One triggering factor was the rising tension on the Korean peninsula as Vietnam has close ties to South Korea.
• End May, MSCI formally upgrades Pakistan to emerging market status. Foreign inflows ahead of this have however been absent during April. The past twelve months, net outflows amounted to USD 400m.
• The Nigerian Central Bank has introduced a new foreign currency trading window where e.g. foreign investors can trade the naira. From May 5^th Tundra has decided to value its Nigerian assets based on the official exchange rate from this window. This resulted in a substantial decrease in value of the Tundra Nigeria & Sub-Sahara Fund on this date. To make the management of the fund more efficient new fund rules will enter in to force on May 29th, 2017. The new rules will broaden the investment mandate and change the name to Tundra Frontier Africa Fund. The fund will continue to focus on the least developed parts of Frontier Africa, such as Nigeria and Kenya. The fund will be allowed to invest in companies based anywhere on the continent, which means that companies from for instance Egypt may have a large weighting in the fund.
• Best among Tundra’s funds during April was Tundra Nigeria and Sub-Sahara Fund and Tundra Pakistan Fund, both rising 2.0% (SEK).

Read the entire update here.