Skip to content
Subscriber Only

Look Out Emerging Markets, Frontier Stocks Are Set to Shine

  • Vietnam, Egypt, Pakistan equities favored by the Swedish fund
  • Tundra’s frontier fund has beaten 97% of its peers this year
Motorcyclists sit in traffic in Ho Chi Minh City, Vietnam on Wednesday, Jan. 10, 2018. A global trade recovery and Vietnam’s young and low-cost workforce have been magnets for international investors like Nestle SA, which have opened factories in the country this year. That’s helping underpin its economy, which expanded 6.8 percent in 2017, among the fastest in the world.
Photographer: Ore Huiying/Bloomberg
Updated on

As the rally in emerging-market stocks eases, equities from more exotic destinations are well-placed to outshine their higher-profile cousins, according to Tundra Fonder AB.

The Tundra Sustainable Frontier Fund, run by the Swedish manager that oversees $400 million in assets, has returned 6.8 percent this year to beat 97 percent of its peers, Bloomberg data show. Egyptian, Vietnamese and Pakistani equities make up almost 60 percent of its holdings, the figures show.