• 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 12/31/2016: $84 million
Total strategy assets*: $84m
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 12/31/2016 | updated quarterly

Composite/Index QTR YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
Frontier Markets Composite (Gross) -0.38% 11.88% 11.88% n/a n/a n/a -0.44%
Frontier Markets Composite (Net) -0.81% 10.03% 10.03% n/a n/a n/a -1.60%
MSCI Frontier Markets Index1(ND) (Benchmark) 0.49% 2.66% 2.66% n/a n/a n/a -10.39%
MSCI Frontier Markets Index1(GD) 0.54% 3.16% 3.16% n/a n/a n/a -10.01%


 


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. The gross dividend (GD) index is calculated with gross dividend reinvestment. The benchmark has changed from the MSCI Frontier Markets Index (GD) to the MSCI Frontier Markets Index (ND) because the net index is more commonly used industry wide and is a more representative comparison versus the strategy because it is presented net of foreign withholding taxes.

For additional disclosure on the Composite, please click here.

Important MSCI disclosures

 

 


Portfolio Characteristics*

as of 12/31/2016 | updated quarterly
  Strategy Benchmark
Number of Holdings 92 123
Weighted Avg. Market Cap (M) $2,399 $4,181
Median Market Cap (M) $901 $1,659
Est. 3-5 Year EPS Growth 14.6% 9.6%
Active Share** 75.53 n/a
Market Cap Breakout
< $5 billion 87.6% 70.5%
$5 - $15 billion 12.4% 29.5%
> $15 billion 0.0% 0.0%

 

Sector Weightings

as of 12/31/2016 | updated quarterly
  Strategy Benchmark
Consumer Discretionary 4.4% 1.2%
Consumer Staples 7.9% 8.8%
Energy 2.7% 8.3%
Financials 40.3% 44.7%
Health Care 5.5% 2.6%
Industrials 8.4% 3.1%
Information Technology 0.0% 0.8%
Materials 9.8% 8.2%
Real Estate 2.0% 4.8%
Telecommunication Services 7.7% 13.9%
Utilities 5.3% 3.6%
Cash 4.3% 0.0%
Unassigned*** 1.7% 0.0%

 

Country Weightings

as of 12/31/2016 | updated quarterly
  Strategy Benchmark
Argentina 6.5% 13.6%
Bahrain 0.0% 3.1%
Bangladesh 14.1% 2.3%
Botswana 0.6% 0.0%
Canada 0.4% 0.0%
Colombia 1.7% 0.0%
Croatia 1.1% 1.4%
Egypt 3.4% 0.0%
Estonia 0.9% 0.4%
Georgia 0.9% 0.0%
Ivory Coast (Cote D'ivoire) 0.0% 0.2%
Jordan 0.0% 1.5%
Kazakhstan 0.0% 1.6%
Kenya 5.9% 4.4%
Kuwait 0.8% 18.0%
Lebanon 0.0% 3.3%
Lithuania 0.0% 0.1%
Mauritius 0.0% 2.9%
Morocco 1.2% 8.7%
Nigeria 5.4% 7.1%
Oman 0.0% 4.2%
Pakistan 15.4% 10.2%
Panama 1.0% 0.0%
Poland 1.0% 0.0%
Qatar 0.8% 0.0%
Romania 7.7% 3.7%
Saudi Arabia 1.7% 0.0%
Senegal 0.9% 1.0%
Singapore 0.8% 0.0%
Slovenia 0.0% 1.6%
Srb 0.0% 0.2%
Sri Lanka 3.1% 1.5%
Tanzania 0.9% 0.0%
Thailand 1.7% 0.0%
Togo 0.0% 0.2%
Tunisia 0.0% 0.5%
United Arab Emirates 2.7% 0.0%
United Kingdom 5.5% 0.0%
United States 1.0% 1.0%
Vietnam 8.8% 7.4%
Cash 4.2% 0.0%

 

Top 5 Holdings****

as of 1/31/2017 | updated monthly
1. Safaricom Limited 3.6%
2. Zenith Bank PLC 3.5%
3. Banca Transilvania SA 3.0%
4. Brac Bank Limited 3.0%
5. National Bank of Kuwait K.S.C. 2.3%

 

 

 


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.
***Unassigned refers to securities that are not recognized by Factset.
****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 strategy. 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 a portfolio manager for the Driehaus Emerging Markets Growth, Driehaus Emerging Markets Small Cap Growth and the 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.

Mr. Thies began his career at the International Finance Corporation of the World Bank Group as a consultant for the gender entrepreneurship markets group in 2005. In 2008, Mr. Thies worked for Opportunity International as a proposal writer. He then worked as an associate international economist for The Northern Trust in 2009. He joined Driehaus Capital Management as a macro analyst in 2011. He 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.