June 05, 2018 (LBO) – Swedish asset manager in frontier markets, Tundra Fonder has increased their position in Sri Lanka’s largest company, John Keells.
According to the May 2018 update of the Tundra Sustainable Frontier Fund, their position in John Keells has been increased from 1 percent to 2.5 percent.
“John Keells, fell sharply in conjunction with their exclusion from the Frontier100 Index (an index that is primarily tracked by ETFs),” Tundra update said.
“We took the opportunity to increase our position in the company to approximately 2.5% (previously 1%) at attractive levels.”
MSCI Frontier Markets 100 Index, which captures large and mid cap representation across 29 frontier markets, last week removed John Keells from its index, triggering foreign selling.
However, current low share prices of John Keells seem to attract foreign investors again.
Tundra update further said that in May, they added ACL Cables, just less than 1 percent of the portfolio to the company to benefit from growing construction activity in Sri Lanka as a result of infrastructure initiatives and increasing tourism.