• Overview
  • Performance
  • Characteristics
  • Risks
  • Portfolio Managers
  • Literature

Investment Strategy

Driehaus Frontier Emerging Markets Fund seeks to maximize capital appreciation.


Fund Facts

Inception Date: 5/4/2015
Ticker: DRFRX
Assets Under Management as of 9/30/2018: $18 million
Open to New Investors: Yes
Minimum Initial Investment: $250,000
Minimum Subsequent Investment: $50,000
Minimum IRA Investment: $100,000
Minimum Subsequent IRA Investment: $10,000
Distributions: Dividends and capital gains are distributed annually in December
Investment Vehicles: Mutual fund
Separately managed account




Driehaus Securities LLC, Distributor



Performance Disclosure
The performance data shown below represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Principal value and investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. The Fund will charge a redemption fee of 2.00% on shares held less than 60 days.

Performance data represents the rate that an investor would have earned (or lost) on an investment in the Funds (assuming reinvestment of all dividends and distributions). Average annual total return reflects annualized change.

Since Fund performance is subject to change after the month-end, please call (800) 560-6111 or view our daily NAVs for more current performance information.

Month-End Performance as of 10/31/2018

Fund/Index MTH YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Driehaus Frontier Emerging Markets Fund -7.14% -19.71% -14.76% 0.24% n/a n/a -2.15%
MSCI Frontier Markets Index (ND)1 -3.53% -15.72% -12.07% 2.82% n/a n/a -0.86%

Calendar Quarter-End Performance as of 9/30/2018

Fund/Index QTR YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Driehaus Frontier Emerging Markets Fund -5.53% -13.54% -7.52% 3.93% n/a n/a -0.06%
MSCI Frontier Markets Index (ND)1 -1.98% -12.63% -7.73% 5.32% n/a n/a 0.16%

Annual Fund Operating Expenses2

Driehaus Frontier Emerging Markets Fund

Management Fee 1.50%
Other Expenses 0.83%
Acquired Fund Fees and Expenses 0.01%
Total Annual Fund Operating Expenses 2.34%
Expense Reimbursement (0.33)%
Total Annual Fund Operating Expenses After Expense Reimbursement 2.01%3



Please consider the investment objectives, risks, fees and expenses of the Fund carefully prior to investing. The prospectus and summary prospectus contain this and other important information about the Fund. To obtain a copy of the prospectus/summary prospectus, please call us at (800) 560-6111.  Please read the prospectus and summary prospectus carefully before investing.

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

Average Annual Total Return

*Inception date: 5/4/2015

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.

2Represents the Annual Fund Operating Expenses as disclosed in the current prospectus dated April 30, 2018. It is important to understand that a decline in the fund’s average net assets due to unprecedented market volatility or other factors could cause the fund’s expense ratio for the current fiscal year to be higher than the expense information presented. A shareholder may be required to pay a commission to their financial intermediary.

3Driehaus Capital Management LLC, the Fund’s investment adviser, has entered into a contractual agreement to cap the Fund’s ordinary annual operating expenses at 2.00% of average daily net assets until the earlier of the termination of the investment advisory agreement, by the Board of Trustees or the Fund’s shareholders, or May 3, 2021. The expense cap excludes interest, taxes, brokerage commissions, dividends and interest on short sales and other investment-related costs, acquired fund fees and expenses and extraordinary expenses, such as litigation and other expenses not incurred in the ordinary course of the Fund's business, resulting in the current total annual fund operating expenses after expense reimbursement of 2.01%. Pursuant to the agreement, and so long as the investment advisory agreement is in place, for a period not to exceed three years from the date on which the waiver and reimbursement was made, the investment adviser is entitled to reimbursement for previously waived fees and reimbursed expenses to the extent that the Fund’s expense ratio remains below the operating expense cap that was in place at the time of the waiver as well as the existing operating expense cap.

Important MSCI disclosures

Driehaus Securities LLC, Distributor



Portfolio Characteristics*

as of 9/30/2018 | updated quarterly
  Fund Benchmark
Number of Holdings 55 115
Weighted Avg. Market Cap (M) $4,080 $5,706
Median Market Cap (M) $1,671 $1,858
Est. 3-5 Year EPS Growth 23.5% 28.1%
Active Share** 73.40 n/a
Market Cap Breakout
< $5 billion 80.1% 59.0%
$5 - $15 billion 11.8% 33.7%
> $15 billion 8.1% 7.3%


Sector Weightings

as of 9/30/2018 | updated quarterly
  Fund Benchmark
Communication Services 3.7% 12.7%
Consumer Discretionary 12.0% 0.6%
Consumer Staples 10.6% 9.7%
Energy 3.3% 6.0%
Financials 33.0% 44.1%
Health Care 3.1% 3.0%
Industrials 5.6% 4.3%
Information Technology 1.0% 1.7%
Materials 6.4% 5.0%
Real Estate 6.5% 9.2%
Utilities 0.7% 3.7%
Cash 1.3% 0.0%
Unassigned 12.8% 0.0%


Country Weightings

as of 9/30/2018 | updated quarterly
  Fund Benchmark
Argentina 0.7% 13.8%
Bahrain 0.0% 4.3%
Bangladesh 7.4% 2.8%
Cambodia 3.6% 0.0%
Canada 1.3% 0.0%
Croatia 0.0% 1.7%
Egypt 5.9% 0.0%
Estonia 0.0% 0.3%
Ghana 0.8% 0.0%
Ivory Coast 0.0% 0.1%
Jordan 0.7% 1.3%
Kazakhstan 0.8% 0.8%
Kenya 3.7% 5.0%
Kuwait 7.5% 21.5%
Lebanon 0.0% 1.8%
Lithuania 0.0% 0.2%
Luxembourg 1.0% 1.9%
Mauritius 0.0% 2.3%
Morocco 1.8% 7.9%
Netherlands 1.8% 0.0%
Nigeria 2.1% 6.5%
Norway 1.0% 0.0%
Oman 1.1% 1.6%
Pakistan 7.9% 0.0%
Romania 7.8% 4.5%
Saudi Arabia 2.5% 0.0%
Senegal 0.0% 0.8%
Slovenia 0.0% 1.6%
Serbia 0.0% 0.2%
Sri Lanka 1.6% 1.0%
Togo 0.0% 0.3%
Tunisia 0.0% 0.7%
Ukraine 1.6% 0.0%
United Arab Emirates 1.8% 0.0%
United Kingdom 0.6% 0.0%
Vietnam 33.7% 16.8%
Cash 1.3% 0.0%


Top 5 Holdings**

as of 9/30/2018 | updated monthly
1. Airports Corporation of Vietnam 9.4%
2. National Bank of Kuwait K.S.C. 6.5%
3. Safaricom PLC 3.7%
4. NagaCorp Ltd. 3.7%
5. Meezan Bank Limited. 3.7%


*Unassigned refers to securities that are not recognized by Factset.
**Holdings subject to change.

Please consider the investment objectives, risks, fees and expenses of the Fund carefully prior to investing. The prospectus and summary prospectus contain this and other important information about the Fund. To obtain a copy of the prospectus/summary prospectus, please call us at (800) 560-6111.  Please read the prospectus and summary prospectus carefully before investing.

Driehaus Securities LLC, Distributor


Principal Risks

All investments, including those in mutual funds, have risks. No investment is suitable for all investors. The Fund is intended for long-term investors who can accept the risks involved in investing in foreign securities. Of course, there can be no assurance that the Fund will achieve its objective. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund:

Market Risk
The Fund is subject to market risk, which is the possibility that stock prices overall will decline over short or long periods. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. These fluctuations are expected to have a substantial influence on the value of the Fund’s shares.

Growth Stock Risk
Growth stocks are typically priced higher than other stocks, in relation to earnings and other measures, because investors believe they have more growth potential. This potential may or may not be realized and, if it is not realized, may result in a loss to the Fund. Growth stock prices also tend to be more volatile than the overall market.

Foreign Securities and Currencies Risk
The Fund invests in foreign securities. Investing outside the U.S. involves different risks than domestic investments. The following risks may be associated with foreign investments: less liquidity; greater volatility; political instability; restrictions on foreign investment and repatriation of capital; less complete and reliable information about foreign companies; reduced government supervision of some foreign securities markets; lower responsiveness of foreign
management to shareholder concerns; economic issues or developments in foreign countries; fluctuation in exchange rates of foreign currencies and risks of devaluation; imposition of foreign withholding and other taxes; dependence of emerging market companies upon commodities which may be subject to economic cycles; and frontier emerging market risk such as limited trading volume, expropriation, devaluation or other adverse political or social developments.

To the extent portfolio securities are issued by foreign issuers or denominated in foreign currencies, the Fund’s investment performance is affected by the strength or weakness of the U.S. dollar against these currencies. Generally, an increase in the value of the U.S. dollar against a foreign currency will reduce the value of a security denominated in that foreign currency, thereby decreasing the Fund’s overall net asset value. Currency rates in foreign countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in interest rates, imposition of currency controls and economic or political developments in the U.S. or abroad.

Frontier Emerging Markets Risk
In addition to the risks associated with investing in foreign securities, investments in securities of issuers located in frontier emerging markets are speculative and subject to certain additional unique risks. There may be little financial or accounting information available with respect to issuers located in these countries, and it may be difficult as a result to assess the value or prospects of an investment in such issuers. Frontier emerging markets are characterized by, among other things, smaller and less diverse economies, less developed capital markets, greater market volatility, lower trading volume, less liquidity, trade barriers, political and economic instability, greater risk of a market shutdown and more governmental limitations on foreign investments than typically found in more developed markets, as well as new or unsettled securities laws. Many frontier emerging market countries may be dependent on commodities, foreign trade or foreign aid, resulting in more pronounced risks.

Concentration Risk
The Fund may invest up to 35% of its total assets in securities of companies in any one industry if, at the time of investment, that industry represents 20% or more of the Fund’s benchmark index, currently the MSCI Frontier Emerging Markets Index. Accordingly, at any time the Fund has such a concentration of investments in a single industry group, it will be particularly vulnerable to factors that adversely affect that industry group.

Commercial Banks Industry Risk
Because the Fund has a significant concentration in the commercial banks industry, it may be susceptible to adverse economic, business, regulatory and other occurrences affecting this industry. Commercial banks can be
adversely affected by, among other things, legislation, regulatory changes, the rate of debt defaults, changing interest rates, changes in general economic conditions and price competition. Commercial banks are typically subject to extensive government regulation, which may limit the operations as well as the types and amounts of loans and other commitments they may make, and the interest rates and fees they can charge. These limitations can have a significant impact on the profitability of the bank.

Small- and Medium-Sized Company Risk
The Fund invests in companies that are smaller, less established, with less liquid markets for their stock, and therefore may be riskier investments. While small- and medium-sized companies generally have the potential for rapid growth, the securities of these companies often involve greater risks than investments in larger, more established companies because small- and medium-sized companies may lack the management experience, financial resources, product diversification and competitive strengths of larger companies. In addition, in many instances the securities of small- and medium-sized companies are traded only over-the-counter or on a regional securities exchange, and the frequency and volume of their trading is substantially less than is typical of larger companies. The value of securities of smaller, less well known issuers can be more volatile than that of larger issuers.

Micro-Cap Company Risk
The securities of micro-cap companies may be more volatile in price, have wider spreads between their bid and ask prices, and have significantly lower trading volumes than the securities of larger capitalization companies. As a result, the purchase or sale of more than a limited number of shares of the securities of a smaller company may affect its market price. The Fund may need a considerable amount of time to purchase or sell its positions in these securities. Some micro-cap companies are followed by few, if any, securities analysts, and there tends to be less publicly available information about such companies. Their securities generally have even more limited trading volumes and are subject to even more abrupt or erratic market price movements than are small-cap and mid-cap securities, and the Fund may be able to deal with only a few marketmakers when purchasing and selling micro-cap securities. Such companies may also have limited markets, financial resources or product lines, may lack management depth, and may be more vulnerable to adverse business or market developments. These conditions, which create greater opportunities to find securities trading well below the Fund’s estimate of the company’s current worth, also involve increased risk.

Liquidity Risk
When there is little or no active trading market for specific types of securities, it can become more difficult to sell the securities at or near their perceived value. In such a market, the value of such securities and the Fund’s share price may fall dramatically. No active trading market may exist for some frontier emerging markets securities and certain frontier emerging markets securities may be subject to restrictions on resale. The inability to dispose of frontier emerging markets securities in a timely fashion could result in losses to the Fund. Investments in most, but not all, frontier emerging markets securities tend to have greater exposure to liquidity risk than domestic securities.

Because the Fund may invest a greater percentage of assets in a particular issuer or a small number of issuers, it may be subject to greater risks and larger losses than diversified funds. The value of the Fund may vary more as a result of changes in the financial condition or the market’s assessment of the issuers than a more diversified fund.

Allocation Risk
The Fund’s overall risk level will depend on the countries and market sectors in which the Fund is invested. Because the Fund may have significant weightings in a particular company, country, industry or market sector, the value of Fund shares may be affected by events that adversely affect that company, country, industry or market sector and may fluctuate more than that of a less focused fund.

High Rates of Turnover
It is anticipated that the Fund will experience high rates of portfolio turnover, which may result in payment by the Fund of above-average transaction costs and could result in the payment by shareholders of taxes on above-average amounts of realized investment gains, including net short-term capital gains, which are taxed as ordinary income for federal income tax purposes.

Manager Risk
How the Fund’s investment adviser manages the Fund will impact the Fund’s performance. The Fund may lose money if the investment adviser’s investment strategy does not achieve the Fund’s objective or the investment adviser does not implement the strategy successfully.

Back to Top


Please consider the investment objectives, risks, fees and expenses of the Fund carefully prior to investing. The prospectus and summary prospectus contain this and other important information about the Fund. To obtain a copy of the prospectus/summary prospectus, please call us at (800) 560-6111.  Please read the prospectus and summary prospectus carefully before investing.

Driehaus Securities LLC, Distributor


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.

Photo of Chad Cleaver

james woods

assistant Portfolio Manager

James Woods is the assistant portfolio manager for the Driehaus Frontier Markets strategy. In this role, he is responsible for providing depth of leadership to the research team and iden­tifying appropriate investment ideas relevant to the strategy. Additionally, Mr. Woods acts as a senior analyst focusing on emerging and frontier market stocks within the materials, energy, industrials sectors for the Driehaus Emerging Markets team.

Before joining Driehaus Capital Management in 2015, Mr. Woods worked as an investment analyst for IFC Asset Management Company, a subsidiary of the World Bank Group. Prior to that role, he worked as a senior equity research associate at FBR & Co. in its diversified industrials and energy and natural resources groups.

Mr. Woods received a M.S. in finance from Vanderbilt University and a B.A. from the University of Florida.





Driehaus Securities LLC, Distributor

Fund Literature

Fund Fact Sheet
Monthly Commentary with Portfolio Characteristics
September 30, 2018
Global Market Outlook
July 2018
Emerging Markets Commentary Archive
Fund Commentary Archive
Portfolio Holdings
September 30, 2018
April 30, 2018
Summary Prospectus
April 30, 2018
Statement of Additional Information
April 30, 2018
Annual Shareholder Report
December 31, 2017
Semi-Annual Shareholder Report
June 30, 2017
  XBRL File*
April 30, 2018


Get Adobe Reader


*An XBRL Viewer is required to view this file.

Driehaus Securities LLC, Distributor