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Reply to @finder: Good point, finder. But the history of Wasatch has been to close funds when the money flow has gotten too big. They have done this on numerous occasions, and in talking with Geritz, she has said she would absolutely do that. I remain confident in her ability to identify when that time has arrived.
Indeed Wasatch has a history of closing their funds early. But perhaps Emerging and Frontier became like a money engine for them: They did close WAEMX, but only when it reached $1.6B and its NAV started falling down. And WAFMX is $1B already.
I talked to Schwab again today. It looks like all HSBC funds and all classes (A and I) of each fund are only accessible to the "institutional" investors. So we are out of luck as Schwab. If anyone else knows how to get into the HSBC Frontier fund, post it here.
I just heard back from FIDO and it's a nogo also. In fact, I called HBSC funds directly and spoke with a wholesale securities rep and he said at this point-in-time it is not available and could not answer if anything is in the works for a LW version.
Forbes: As Sanusi Is Suspended, Is Nigeria Still The World's New Investment Darling?
As Nigeria has shifted from a corruption-addled frontier state to one of the world's few emerging market bright spots, it has been assisted enormously by the charisma and gravitas of two of its financial leaders. One is the coordinating minister for the economy and minister of finance, Ngozi Okonjo-Iweala, familiar on the multilateral bank meeting circuit for her strong leadership, candidacy for the world Bank presidency - and her colourful headscarves. The other is central bank governor Sanusi Lamido Sanusi, sharp-suited and sharper-minded. It's never been entirely clear how well the two people, or at least their institutions, get along, but they present to the world a credible, smart, articulate face for a country whose finances have often been murky.
But now Sanusi, who was due to step down in June, has been suspended by President Goodluck Ebele Jonathan over allegations of "financial recklessness and misconduct." Few in the west take these words - taken verbatim from a statement issued by the president through his media adviser, Reuben Abati - at face value, and the result has been to erode confidence in one of the few market darlings of frontier-spirited fund managers in recent years.
Analysts predicted that foreign investors would now be active sellers of assets in Africa's second biggest economy, just when it had been attracting more interest than ever for the huge potential of its 170 million population and a backlog of work needed to update its inadequate infrastructure.
"The suspension will come as a significant shock to foreign portfolio investors, whose willingness to invest in Nigeria was very much influenced by the transparency and anti-inflation credibility associated with Sanusi's policies," said Razia Khan, head of Africa research at Standard Chartered.
Apparently, Goodluck Jonathan manufactured some ALLEGED corruption. That guy was too honest, too thorough to remain. He was no doubt on the verge of publicizing some REAL corruption, on his own. (Can't help my sarcasm: "Goodluck???" REALLY???? Just reminds me of the nutjob Idi Amin Dada. "Yes, call me Dada, I love you all like a father.") Choke, puke. I suppose the Nigerian leader has it coming, if investors flee. The saddest part is that they will flee due to dimmed prospects to make money, not because the man is an unethical, reprehensible disaster.
Reply to @mcmarasco: Here is the link from Ted's original posting concerning the rebalance and "graduation".It's a good read. An excerpt. "The kicker here is that, in May, both Qatar and the United Arab Emirates will graduate from “frontier” to “emerging markets” in the MSCI system. As a result, they will be kicked out of FM. That’s 31 percent of the portfolio and the biggest driver of recent returns."
Comments
Indeed Wasatch has a history of closing their funds early. But perhaps Emerging and Frontier became like a money engine for them: They did close WAEMX, but only when it reached $1.6B and its NAV started falling down. And WAFMX is $1B already.
Regards,
Ted
Brokerage Availability:
http://financials.morningstar.com/fund/purchase-info.html?t=HSFAX®ion=usa&culture=en-US
http://www.forbes.com/sites/chriswright/2014/02/21/as-sanusi-is-suspended-is-nigeria-still-the-worlds-new-investment-darling/
Forbes: As Sanusi Is Suspended, Is Nigeria Still The World's New Investment Darling? =====
Feb 20, 2014
http://www.reuters.com/article/2014/02/20/nigeria-sanusi-idUSL6N0LP1TL20140220
If the analyst's prediction comes to fruition, then maybe it's a buying opportunity?? I guess, it's the eternal optimist coming out!
Regards,
Ted