• Overview
  • Performance
  • Characteristics
  • Notes
  • Portfolio Managers
  • Literature


Investment Strategy

The Frontier Markets strategy generally invests in companies of all capitalizations based within the frontier markets.

 

Strategy Facts

Inception Date: 9/1/2014
Composite Assets as of 9/30/2017: $43 million
Total strategy assets*: $43m
Open to New Investors: Yes
Separately Managed Accounts Minimum Initial Investment: $20 million
Investment Vehicles: Separately managed account
Mutual fund

 

*Total strategy assets include all assets managed in the strategy style. Composite assets include those accounts that meet the composite objectives and eligibility requirements. Please click here for descriptions of composite objectives and eligibility requirements.

 

 

 


Performance as of 9/30/2017 | updated quarterly

Composite/Index QTR YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Frontier Markets Composite (Gross) 1.71% 14.15% 13.72% 3.72% n/a n/a 4.04%
Frontier Markets Composite (Net) 1.29% 12.65% 11.71% 2.33% n/a n/a 2.67%
MSCI Frontier Markets Index1(ND) 8.03% 24.86% 25.47% -1.36% n/a n/a -1.10%


 


Sources: Driehaus Capital Management LLC, Morgan Stanley Capital International Inc.

*Inception Date: 9/1/2014

The performance data represents the strategy’s composite of frontier markets cap growth accounts managed by Driehaus Capital Man­agement LLC (DCM) (the composite). These returns are estimated for the period as all underlying accounts have not yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts. The performance data shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Please see the notes section for other important information.

The performance results for the Composite are shown in comparison to an index. While the securities comprising the indices are not identical to those in any account in the Composite, the Company believes this may be useful in evaluating performance. Unlike the Composite, the index is not actively managed and does not reflect the deduction of any advisory or other fees and expenses.

1The Morgan Stanley Capital International Frontier Markets Index provides broad representation of the equity opportunity set while taking investability requirements into consideration within each market MSCI classifies as a frontier market. Data is in US Dollars. The net dividend (ND) index is calculated with net dividend reinvestment.

For additional disclosure on the Composite, please click here.

Important MSCI disclosures

 

 


Portfolio Characteristics*

as of 9/30/2017 | updated quarterly
  Strategy Benchmark
Number of Holdings 73 115
Weighted Avg. Market Cap (M) $3,948 $5,376
Median Market Cap (M) $1,953 $1,895
Est. 3-5 Year EPS Growth 19.3% 23.8%
Active Share** 71.09 n/a
Market Cap Breakout
< $5 billion 71.0% 53.5%
$5 - $15 billion 29.0% 46.5%
> $15 billion 0.0% 0.0%

 

Sector Weightings

as of 9/30/2017 | updated quarterly
  Strategy Benchmark
Consumer Discretionary 12.4% 0.9%
Consumer Staples 7.9% 9.6%
Energy 4.3% 8.0%
Financials 39.3% 46.6%
Health Care 5.4% 2.9%
Industrials 11.0% 4.2%
Information Technology 0.7% 0.9%
Materials 4.8% 4.8%
Real Estate 0.0% 0.0%
Telecommunication Services 7.1% 13.7%
Utilities 3.9% 3.9%
Cash 3.2% 0.0%

 

Country Weightings

as of 9/30/2017 | updated quarterly
  Strategy Benchmark
Argentina 11.3% 20.1%
Bahrain 0.0% 3.9%
Bangladesh 13.3% 2.4%
Botswana 0.9% 0.0%
Colombia 0.8% 0.0%
Croatia 0.6% 1.4%
Egypt 2.2% 0.0%
Estonia 0.8% 0.4%
Georgia 0.5% 0.0%
Ghana 0.3% 0.0%
Ivory Coast 0.0% 0.2%
Jordan 1.4% 1.2%
Kazakhstan 1.6% 1.9%
Kenya 2.5% 4.8%
Kuwait 10.8% 19.0%
Lebanon 0.0% 2.5%
Lithuania 0.0% 0.1%
Luxembourg 0.0% 0.9%
Mauritius 0.0% 2.9%
Morocco 1.6% 7.7%
Nigeria 6.0% 7.7%
Oman 0.0% 3.3%
Pakistan 8.9% 0.0%
Poland 0.8% 0.0%
Romania 5.4% 3.7%
Saudi Arabia 4.5% 0.0%
Senegal 1.1% 0.9%
Slovenia 0.0% 1.6%
Serbia 0.0% 0.2%
Sri Lanka 1.6% 1.4%
Tanzania 0.8% 0.0%
Thailand 2.8% 0.0%
Togo 0.0% 0.3%
Tunisia 0.0% 0.4%
United Arab Emirates 2.2% 0.0%
United Kingdom 1.3% 0.0%
United States 0.0% 0.9%
Vietnam 12.9% 10.1%
Cash 3.2% 0.0%

 

Top 5 Holdings***

as of 10/31/2017 | updated monthly
1. National Bank of Kuwait K.S.C. 5.5%
2. Human Soft Holding Co. KSCC 3.1%
3. Brac Bank Limited 3.0%
4. Safaricom Limited 2.6%
5. Pampa Energia SA Sponsored ADR 2.5%

 

 

 


Sources: Driehaus Capital Management LLC, Factset Research Systems, Inc., eVestment Alliance
Benchmark: MSCI Emerging Markets Index
*Portfolio characteristics represent the strategy’s composite
**Data is calculated monthly.
***Holdings subject to change.

For additional disclosure on the Composite, please click here.

 


Composite Notes

Driehaus Capital Management LLC (DCM) is a registered investment adviser with the United States Securities and Exchange Commission (SEC). DCM provides investment advisory services using growth equity strategies to individuals, organizations, and institutions. The firm consists of all accounts managed by DCM (the Company). Prior to October 1, 2006, the firm included all accounts for which Driehaus Capital Management (USVI) LLC (DCM USVI) acted as investment adviser. On September 29, 2006, DCM USVI ceased conducting its investment advisory business and withdrew its registration as a registered investment adviser with the SEC. Effective September 30, 2006, DCM USVI retained DCM as investment adviser to these portfolios.

DCM claims compliance with the Global Investment Performance Standards (GIPS®).

This performance information is estimated for the period as not all underlying accounts have yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts.The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

COMPOSITE OBJECTIVES AND ACCOUNTS ELIGIBLE FOR THE FRONTIER MARKETS COMPOSITE
The Driehaus Frontier Markets Composite represents all “frontier markets accounts” actively and exclusively managed by DCM since inception of the first account in September 2014 when the composite was created.

The style seeks to maximize capital appreciation by investing primarily in equity securities of companies domiciled in frontier markets and companies not domiciled in frontier markets but that derive a substantial portion of their revenues from frontier markets. Frontier markets will be defined as those countries classified as frontier markets by the MSCI. The style will hold a diversified portfolio unconstrained as to geography, sector or market capitalization.

Once an account has met the above criteria and is fully invested, it is included in the Composite in the next full monthly reporting period. Accounts that change investment strategies are transferred between composites in the first full monthly reporting period in which the account is managed under the new style. Terminated accounts are excluded from the Composite in the first month in which they are not fully invested as of the end of the month.


Photo of Chad Cleaver

Chad Cleaver, CFA

Lead Portfolio Manager

Chad Cleaver is the lead portfolio manager for the Emerging Markets Small Cap Growth and Frontier Markets strategies and a portfolio manager for the Emerging Markets Growth and Multi-Asset Growth Economies strategies. In his role as lead portfolio manager, he has final responsibility for the strategy’s portfolio construc­tion, risk management and buy/sell decisions. In his role as portfolio manager, he is responsible for idea generation, portfolio construction, security selection and investment research. He is also involved in daily tracking of the portfolio performance as well as macro-level trends and the market environment.

Mr. Cleaver began his career with the Board of Governors of the Federal Reserve System and joined Driehaus Capital Management in 2004. He received his A.B. in economics from Wabash College in 2000 and his MBA from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill in 2004. Mr. Cleaver is a CFA charterholder.


Photo of Chad Cleaver

Richard Thies

Portfolio Manager

Richard Thies is the lead portfolio manager on the Driehaus Multi-Asset Growth Economies strategy and a portfolio manager for the Driehaus Emerging Markets Growth, Driehaus Emerging Markets Small Cap Growth and Driehaus Frontier Markets strategies. In this role, he is re­sponsible for idea generation, portfolio construction, security selection and investment research. Additionally, Mr. Thies provides comprehensive macroeconomic analysis to the firm’s investment management and research department, incorporating data releases, market expectations and government actions into forecasts for currencies, interest rates, sectors and market movements. Also, at the request of portfolio managers and analysts, he provides in-depth analysis of specific events and potential scenarios at the region, country and sector levels.

Prior to joining Driehaus Capital Management in 2011 as a macro analyst, Mr. Thies worked as an associate international economist covering emerging markets at The Northern Trust. During his time at The Northern Trust, Mr. Thies performed economic analysis, interest rate forecasts and country risk assessments for both internal and external use. In advance of his time at The Northern Trust, Richard worked in microfinance banking in sub-Saharan Africa with both the International Finance Corporation of the World Bank Group and Opportunity International. Mr. Thies received his Bachelor of Arts in international studies from Emory University in 2005 and his Master of Arts degree focused in international political economy from the University of Chicago in 2007.