Tundra Fonder is a Swedish asset manager with frontier markets located in Nigeria, Pakistan, and Sri Lanka. It opened the Tundra Vietnam Fund last May 6th, 2014, with one of its offices located in Ho Chi Minh City, Vietnam.
Recent News on Tundra Fonder
Tundra Fonder will continue with its activities in ESG-led investment. This year, Tundra Fonder is the proud receiver of the Nordic Swan Ecolabel – one of the first funds to receive it globally. They also received the award “Best Fund” for their project, the Sustainable Frontier Fund.
The organization has revealed their new ESG rating system. The objective for the system is to serve as a communication platform and simulate continued dialogue with Tundra Fonder’s portfolio companies.
Tundra Fonder has also announced new changes in their processes. They will be synchronizing their reporting cycles, with the annual sustainability report moved to April. Their semi-annual report, on the other hand, will be on October.
On the Tundra Vietnam Fund
The fund currently boasts a 46.4% return in USD overall. It ranks 7th in total return in emerging markets in Asia. Its rate of return continues to rise steadily starting 2017 up to present. Tundra Vietnam Fund’s rate of return is currently above the sector average.
The fund’s annual performance is reported to have risen by 40% from 2017 to March 31, 2018. It has returned 6.8% this year as of February 2018, according to Bloomberg. This makes it above 97% of its peers within the industry.
As of April 2018, Tundra Fonder holds through its Tundra Vietnam Fund 5.06% of the shares outstanding in Saigon General Service Corporation JSC. It also gained ownership of 5.15% shares outstanding shares of TNG Investment & Trading JSC as well as 5.03% of Kido Frozen Foods. This makes Tundra Fonder a major shareholder of said companies through local regulations.
Tundra Fonder’s Views
Tundra Fonder’s CEO as well as Shamoon Tariq, vice CIO of the organization, sat down in an interview to express their views on the fund.
They expressed that frontier markets are currently composed of domestic investors. Despite recent stock setbacks, Tundra Fonder states that there was only a small decline in their Pakistani and Egyptian Stocks, as well as Bangladesh and Sri Lankan equities. They encourage investors to target a long-term stance to prepare for the illiquid markets.
Both the CEO and Tariq are optimistic towards Vietnam and Pakistan. This is due to their relatively low position in economic development. Tundra Fonder sees the potential and hope for a catch-up effect, much like Brazil decades back.
As of this year, Tundra Fonder admits that Vietnam has been “a bit pricey but that is tilted to the blue chips”. However, it remains strong in its long-term appeal is viewed as more attractive among top-valued companies.
Tundra Fonder plans to utilize its local presence to look beyond the largest valued stocks for further success.