Asia Frontier Capital Ltd. (AFC) launched the first investment fund – AFC Uzbekistan Fund, which is specialized in the stock market of Uzbekistan, the company said in a press release.
“This fund aims to achieve long-term capital growth for investors by extracting value in growing listed companies over the next 5-7 years, with a predominant concentration on companies in the private sector and government facilities subject to privatization. An investment mandate of the fund includes local companies that carry out their main activities in Uzbekistan, as well as foreign listed companies that carry out most of their activities in Uzbekistan and neighboring countries (Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan),” the report indicates.
It was stressed that the company is the first non-strategic investor in the stock market of Uzbekistan, who successfully repatriated income from major investments and capital gains as a result of the sale of securities listed on the “Toshkent” Stock Exchange in March 2019. At the same time, AFC expects a significant increase in the stock market of Uzbekistan.
Together with the official abolition of capital controls in Uzbekistan, starting from March 2, the AFC Uzbekistan Fund will issue new shares every month and offer monthly liquidity with a preliminary three-month notice period for investors wishing to return and repay their shares.
AFC also expects that many private companies will consider listing on the Republican Stock Exchange “Toshkent” as the market size increases and foreign investors return.
“Opening time of the AFC Uzbekistan Fund provides an attractive entry point for long-term investors, as we expect that this opportunity in the listing securities market will be recognized by other international investors in the near future, it will lead to a sharp price increase as estimates approach to regional and other emerging Asian markets,” AFC Chief Executive Officer Thomas Hugger said.
According to the Chief Investment Officer of the Fund Scott Osheroff, “since Uzbekistan continues to carry out reforms quickly, it is possible for the country to dominate the economy in Central Asia”.
Asia Frontier Capital Ltd., a company incorporated in the Cayman Islands, focuses exclusively on the emerging economies of Asia. Its fund focuses primarily on investments in stocks related to consumer goods, financial sphere and infrastructure.