Sri Lanka among core markets for Tundra Sustainable Frontier Fund

The Sweden-based global asset management company, Tundra Fonder’s Tundra Sustainable Frontier Fund, has identified Sri Lanka as a core market and is planning to hold an investor forum in Colombo this March. 

The forum titled ‘CSE-Tundra Sustainability Forum’ will be held on March 5, at The Kingsbury Hotel, in collaboration with the Colombo Stock Exchange. In its latest update, Tundra Sustainable Frontier Fund said Sri Lanka is among its core frontier markets along with Egypt, Vietnam, Pakistan, Bangladesh, Nigeria and Kenya.

“We will enter 2018 with a crystal clear focus on our seven core markets: Egypt 23 percent, Vietnam 22 percent, Pakistan 18 percent, Bangladesh 10 percent, Nigeria 10 percent and Sri Lanka 8 percent,” the frontier market fund said.

“Together, these countries have a population of over 800 million people and an average GDP/capita of less than US $ 3,000. Although we have invested and will from time to time invest, a portion of the portfolio outside these countries, this should be seen as exploiting temporary opportunities,” it added.

Dubbed as the world’s first frontier market fund with a sustainable profile, Tundra Sustainable Frontier Fund also said it has taken position in Nestle Sri Lanka. “Finally, we have taken a position in Nestle Sri Lanka, which after four years of stagnant stock price now has become attractive enough for us to take an initial position. Nestle Sri Lanka intends to commission a larger new facility in 2018, which will allow for healthy growth in the coming years.” Nestle Lanka is yet to release its December quarter (4Q17) interim financial accounts to the market and the Tundra Sustainable Frontier Fund did not appear among the top 20 shareholders of the company as at September 30, 2017.