Dear reader,

Tundra Sustainable Frontier Fund primarily gives you exposure to the 3.7 billion of the world’s population, which is expected to be the fastest-growing part of the world but have little representation in a Global Emerging Markets Fund. These countries’ population will grow to reach 6.5 billion during the next 50 years and will be the only part of the world where we will see an increase in the workforce. It will not be a journey without perils but their share of world GDP, and their importance for investors will inevitably increase. Many of the world’s largest companies, some of which you have not even heard of, will rise as a result of the demographic changes. We will try to find the best companies in that part of the world.

The emergence of this new middle-class will however not come without challenges. We will strive to invest in companies that are prepared to take responsibility for the impact they have on the environment, the society they work in, and their employees. Companies that also respect and value their shareholders. We will take our responsibility as important investors to help them continue to develop towards a sustainable future. Your investment can contribute to that.

We are heading towards an exciting period. Many years of stimulus in developed markets have created a valuation gap where most of our markets are valued lower than seen before. You do not necessarily have to be pessimistic about other equity markets, but merely question how long this gap can continue to increase given the higher growth in our markets. Investment cycles can be long but they are called cycles simply because they fluctuate. If you are a long-term investor, it is reasonable at this stage of market development to consider diversifying your portfolio somewhat.

The overall aim of this text is to explain the characteristics between the different markets and ensure an increased understanding of which part of the world Tundra will primarily invest in. Hopefully, this has also triggered an interest in emerging markets. Ideally, all investors should have at least two emerging market funds: one which invests in the most important countries today – such as China, South Korea, and Taiwan, and a second that invests in the rest of these fast-growing markets. We hope we can win your confidence to be that second fund.

Read the report here.