Second, the fund’s flexible approach makes sense. It focuses on large-cap companies, but is also open to small caps and special opportunities. I agree with the fund’s 21 percent top weighting to Vietnam and the intelligent strategy of investing in each country’s strengths, such as tourism in Sri Lanka, mining in Mongolia, food companies in Vietnam, agriculture in Cambodia and textiles in Bangladesh.
Here’s the kicker: Many of the companies in the portfolio have significantly lower valuations compared to similar emerging and western companies, making them attractive acquisition targets.
Frontier Asian markets are on the move and advisors should get on board.
Carlton Delfeld is managing director of Chartwell Partners, an alternative asset advisory firm, and vice chairman of the Pacific Economic Club. He can be contacted at [email protected].