New Fund Will Invest In ‘Next 11,’ Including Iran

Aug 31 2010 | 5:28am ET

Castlestone Management is set to roll out a fund investing in 11 emerging and frontier markets, hoping to hit upon the next BRIC success story.

The US$350 million London-based firm will launch the fund in the beginning of October. The new vehicle is based on Goldman Sachs’ prediction that 11 countries are likely to follow in the footsteps of Brazil, Russia, India and China.

“It gives investors a second shot at a BRIC-like opportunity at a time when you’re not early in getting to the BRIC story anymore,” fund manager Arrash Zafari told Reuters.

The countries in the Next 11 Emerging Markets Fund “have the same fundamental drivers” as the BRIC countries: “very large populations that are often still growing and getting richer and whose spending power will be increasingly integrated with the global economy.”

The “Next 11” are Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philipines, South Korea, Turkey and Vietnam. The Castlestone fund will invest about 10% of its assets in South Korea and split 65% among Indonesia, Mexico, the Philippines and Turkey. Another 20% to 25% will be invested in Egypt, Nigeria, Pakistan and Vietnam, with 5% invested in the most frontier of the new emerging markets, Bangladesh and Iran.

Zafari brushed off risk concerns about some of his 11 countries, saying that Iran is a “jaw-dropping opportunity” that is “completely overlooked,” likely because of the country’s rogue status with the United Nations and U.S.

The Next 11 fund will be domiciled in the British Virgin Islands. According to Zafari, it has a capacity of about US$200 million.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.