Why Vietnam and Romania are next in line for EM upgrade

Vietnam and Romania are prime candidates for an upgrade to the coveted emerging market status, and could soon follow in the footsteps of the UAE. Charlemagne's Bokor-Ingram explains why.

Taking 2013 as a whole, emerging markets fell by 4.4% while the MSCI Frontier Market index was actually up by an impressive 23.6% (in sterling, net total return). Meanwhile, over the first seven months of 2014, the MSCI Emerging Markets index is up by 6.1% against 20% from the frontier markets UAE upgrade The rationale for investing in frontier markets is not only to take advantage of significantly higher economic growth rates versus the developed world, but also to benefit from a re-rating of the valuation of companies when they achieve emerging market status. The most notable exa...