New Frontiers fund begin trading for institutional investors. The New Frontiers fund will hold 50-100 stocks taken that are from a wide range of countries from the Middle East, Africa, and Easter Europe.
The funds biggest holding will be in the financial sector (58%) and it will have limits of 10% of the total fund portfolio in any one stock and 15% of the total fund size in any one country.
HSBC has pointed to robust commodity prices, favorable demographics, and continued increased inflows of technology and capital from the developed world markets as major factors fueling growth in the frontier markets.
HSBC CEO Mark McCombe said they are also planning another frontier market exchanged traded fund (ETF). This fund will launch in 2009. It will use computer driven models to actively allocate investments between the frontier market countries, such as Indonesia, Vietnam, and the African countries. -- areas of increasing investor interest in recent years.