The AFC Asia Frontier Fund (Non-US) (AAFF) USD A-shares increased by 4.2% in April 2020 with a NAV of USD 1,062.41. The fund underperformed the AFC Frontier Asia Adjusted Index (+17.9%), the MSCI Frontier Markets Asia Net Total Return USD Index (+13.1%), the MSCI Frontier Markets Net Total Return USD Index (+6.7%), and the MSCI World Net Total Return USD Index (+10.9%). The performance of the AFC Asia Frontier Fund A-shares since inception on 31st March 2012 now stands at +6.2% versus the AFC Frontier Asia Adjusted Index, which is down by 12.5% during the same period. The broad diversification of the fund’s portfolio has resulted in lower risk with an annualised volatility of 10.28% and a correlation of the fund versus the MSCI World Net Total Return USD Index of 0.49, all based on monthly observations since inception. The best performing indexes in the AAFF universe in April were Pakistan (+16.7%) and Vietnam (+16.1%). The poorest performing markets were Iraq (−10.4%) and Mongolia (−3.0%) while the stock markets in Bangladesh and Sri Lanka remained closed due to the countrywide lockdowns. The top-performing portfolio stocks this month were a Mongolian junior gold miner (+100.0%), a Pakistani automotive battery company (+49.8%), another Mongolian junior gold miner (+43.3%), a Vietnamese construction company (+39.5%), and a Vietnamese automobile holding company (+35.7%).

In April, the fund exited a Mongolian duty-free shop operator, a Pakistani cement company and a Vietnamese airport operator and added to existing positions in Vietnam and partially exited positions in Mongolia.

At the end of April 2020, the portfolio was invested in 69 companies, 2 funds and held 4.5% in cash. The two biggest stock positions were a pump manufacturer from Vietnam (10.4%), and a pharmaceutical company in Bangladesh (9.3%). The countries with the largest asset allocation were Vietnam (21.6%), Mongolia (19.3%), and Bangladesh (15.6%). The sectors with the largest allocation of assets were consumer goods (25.2%) and industrials (17.0%).

The AFC Asia Frontier Fund (Non-US) (AAFF) USD A-shares increased by 4.1% in May 2020 with a NAV of USD 1,106.10. The fund outperformed the AFC Frontier Asia Adjusted Index (+3.2%) but underperformed the MSCI Frontier Markets Asia Net Total Return USD Index (+12.2%), the MSCI Frontier Markets Net Total Return USD Index (+5.7%), and the MSCI World Net Total Return USD Index (+4.8%). The performance of the AFC Asia Frontier Fund A-shares since inception on 31st March 2012 now stands at +10.6% versus the AFC Frontier Asia Adjusted Index, which is down by 9.7% during the same period. The broad diversification of the fund’s portfolio has resulted in lower risk with an annualised volatility of 10.54% and a correlation of the fund versus the MSCI World Net Total Return USD Index of 0.50, all based on monthly observations since inception. The best performing indexes in the AAFF universe in May were Cambodia (+26.3%) and Vietnam (+12.4%). The poorest performing markets were Laos (−2.8%) and Mongolia (−2.6%). The top performing portfolio stocks this month were a Mongolian junior copper miner (+68.8%), a Mongolian junior gold miner (+37.9%), a Myanmar focused conglomerate (+28.8%), a Sri Lankan telecom company (+22.4%), and a Vietnamese construction company (+21.2%).

In May, the fund added to existing positions in Mongolia and Vietnam and partially exited positions in Bangladesh and Mongolia.

At the end of May 2020, the portfolio was invested in 69 companies, 2 funds and held 5.7% in cash. The two biggest stock positions were a pump manufacturer from Vietnam (11.1%), and a pharmaceutical company in Bangladesh (6.2%). The countries with the largest asset allocation were Vietnam (23.0%), Mongolia (19.1%), and Bangladesh (12.5%). The sectors with the largest allocation of assets were consumer goods (23.8%) and industrials (18.2%). The fund’s estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 7.31x, the estimated weighted harmonic average P/B ratio was 0.70x and the estimated weighted average portfolio dividend yield was 3.98%.

The AFC Asia Frontier Fund (Non-US) (AAFF) USD A-shares increased by 1.0% in June 2020 with a NAV of USD 1,117.19. The fund outperformed the AFC Frontier Asia Adjusted Index (−2.1%) and the MSCI Frontier Markets Asia Net Total Return USD Index (−2.9%) but underperformed the MSCI Frontier Markets Net Total Return USD Index (+1.7%) and the MSCI World Net Total Return USD Index (+1.5%). The performance of the AFC Asia Frontier Fund A-shares since inception on 31st March 2012 now stands at +11.7% versus the AFC Frontier Asia Adjusted Index, which is down by −11.6% during the same time period. The broad diversification of the fund’s portfolio has resulted in lower risk with an annualised volatility of 10.49%, and a correlation of the fund versus the MSCI World Net Total Return USD Index of 0.50, all based on monthly observations since inception.

The best performing indexes in the AAFF universe in June were Sri Lanka (+6.2%) and Iraq (+5.0%). The poorest performing markets were Cambodia (−15.1%) and Vietnam (−4.6%). The top-performing portfolio stocks this month were a Mongolian junior gold miner (+53.1%), a Sri Lankan bank (+28.0%), a Mongolian coking coal miner (+27.5%), another Mongolian junior gold miner (+25.0%), and a Myanmar focused conglomerate (+23.5%).

In June, the fund bought a consumer healthcare company in Pakistan, a consumer conglomerate in Sri Lanka and a uranium miner in Kazakhstan and sold a construction company in Vietnam. During the month the fund also added to existing positions in Bangladesh, Sri Lanka, Mongolia and Vietnam and partially exited positions in Bangladesh and Mongolia.

At the end of June 2020, the portfolio was invested in 72 companies, 2 funds and held 3.4% in cash. The two biggest stock positions were a pump manufacturer from Vietnam (11.2%), and a pharmaceutical company in Bangladesh (5.0%). The countries with the largest asset allocation were Vietnam (21.1%), Mongolia (20.5%), and Bangladesh (11.3%). The sectors with the largest allocation of assets were consumer goods (25.2%) and industrials (16.9%). The fund’s estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 7.44x, the estimated weighted harmonic average P/B ratio was 0.72x and the estimated weighted average portfolio dividend yield was 3.52%.

Domicile: Cayman Islands

Sources: Bloomberg LP, Asia Frontier Capital