Tundra Fonder, the Swedish manager, is claiming a world first launch of a frontier markets fund that adopts a sustainability profile.
The Tundra Sustainable Frontier Fund will invest in countries including Vietnam, Bangladesh, Pakistan, Sri Lanka, Nigeria and Kenya.
The portfolio will have an ESG focus, and will not invest in weapons, alcohol, tobacco, pornography, commercial gambling or companies that violate UN conventions.
In support of the new fund, Tundra is employing two analysts from Transparency International, who will be based at the manager’s Karachi office in Pakistan, while Ethix SRI Advisors in Stockholm will be its ESG research partner with responsibility for assuring the sustainability profile.
Jon Scheiber, Tundra Fonder’s CEO, said: “Tundra is the world’s first fund management company to combine investments in frontier markets with a sustainability focus. And there is great interest. Three public institutions have already guaranteed seeding in the fund.”
The three institutions are understood to be Swedish counties (landsting).
Tundra was founded in October 2011, since when it has grown assets under management to almost SEK2bn (€215m). It currently has offices in Stockholm and Karachi and employs some 13 staff. Recently it expanded into Switzerland, but the manager says that other European countries are “included in the expansion plans”.
The manager’s current range includes the Frontier Opportunities, Nigeria and Sub-Sahara, Pakistan, Russia and Vietnam funds.