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Frontier Markets Closed-End Fund (CEF) Strategy

Overview

The Frontier Markets Closed-End Fund (CEF) Strategy seeks to provide long-term capital growth via stock selection and active country allocation. We believe that funds offer an efficient way to invest in Frontier markets. We specialize in identifying and capitalizing on discount movements and pricing anomalies to seek to provide above average, long-term outperformance versus the appropriate benchmark while maintaining a lower level of volatility than the benchmark.

Frontier Markets Composite Performance Ending 30-Sep-22*

Performance results reflect the reinvestment of dividends and other earnings. Returns are net of fees and are based on an investment management fee of 1.25% per annum. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Frontier Markets Composite was created in July 2005, and is an international equity composite focused on frontier countries, managed by City of London Investment Management. The strategy strives to outperform the S&P Extended Frontier 150 Net Total Return Index with controlled risk. It utilizes fundamental investment principles and quantitative approaches to provide broad frontier market equity exposure. It uses both top-down and bottom-up valuation methodologies to value asset classes, countries, sectors, securities and both closed-end and open-end funds to determine investment opportunities. The strategy has a value and growth approach to investment. The composite is managed to the S&P Extended Frontier 150 Net Total Return Index. As of June 2013, City of London switched to the net total return series of the S&P Extended Frontier 150 Index (from the gross total return series). Net total return indices reinvest dividends after the deduction of withholding taxes and provide a better comparison with the performance of the Composite.

**Index Description: The S&P Extended Frontier 150 Index consists of 150 of the largest and most liquid stocks from frontier markets. The index is designed to be a diversified, yet investable portfolio of frontier market stocks. As of 31 December 2021, the S&P Extended Frontier 150 Index includes 34 markets. The index is unmanaged and has no fees. One cannot invest directly in an index. The holdings of the portfolio differ significantly from the securities that comprise the index.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (S&P); and this trademark has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by CLIM. CLIM’s financial products are not sponsored, endorsed, sold or promoted by S&P, its respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

The portfolio's investment objective is to achieve long-term capital growth. The portfolio will invest primarily in listed closed-end funds (“CEFs”) that invest in securities providing exposure to frontier markets. Emerging securities markets tend to be smaller, less liquid and more volatile than the major securities markets in the United States. There is less publicly available information about the issuers in emerging markets than is regularly published by issuers in the United States. Also, there is generally less government supervision and regulation of exchanges, brokers and issuers in emerging markets than there is in the United States. The legal infrastructure and accounting, auditing and reporting standards in certain emerging markets in which the portfolio invests do not provide the same degree of investor protection or information to investors as would generally apply in more developed countries. The portfolio could be adversely affected by delays in or a refusal to grant any required government approval or by the lack of availability of foreign exchange. The portfolio will be subject to the risks of government control, political instability and social unrest with respect to its investments in emerging markets that could, in turn, have an adverse effect on the portfolio's operations and performance. Frontier markets are subject to the same risks as emerging markets, but such risks tend to be more acute, generally as a result of the smaller capitalization of such markets and being the least developed of emerging markets.

Source: City of London Investment Management, S&P

Definition of the Firm

City of London Investment Management Company Limited is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority and registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC).

CLIM claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

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City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA) and is registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC).
Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2022 City of London Investment Management Company Limited.
All rights reserved.

City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA) and is registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC). Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2022 City of London Investment Management Company Limited. All rights reserved.