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Barclays Global Investor started the new fund for their insitutional investors, dedicated exclusively to emerging markets worldwide, among which is Croatian too. Croatia is one of 16 countries to satisfy high BGI criteria as they were looking for rather safe markets to invest.
BGI Frontier Markets Fund that will not be offered to public, but exclusively to chosen pension and state funds, will be followed by MSCI Frontier Markets Index that includes 19 markets. However, BGI decided to invest in only 16 out of 19 markets, which in their opinion do not restrict foreign investments, monetary policy or limited liquidity.
The fund will therfore invest in the markets of Croatia, Slovenia, Romania, Bulgaria, Estonia, Arab Emirates, Kuwait, Oman, Bahrain, Kazahstan, Ukraine, Tunisia, Mauricius, Vietnam and Shri-Lanka. According to BGI´s analyses, thouse markets showed correlation less then 0,3 to the United States, therefore could be interested to balance investors portfolios. Also, those 16 markets make 4% of the worldwide GDP, with the average annual GDP increase of 5,5% over the past 5 years, which is even more from traditional developing markets (4,25%) and certanly more than United States (2,75%).
At the moment BGI is the largest investment house considering the value it has within the index funds. BGI has over 2.900 institutional clients and manages assest of over 2 billion US dollars.
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