Frontier market indicies had a reshuffle this year as UAE and Qatar ascended to emerging market. VAM Funds' Chad Cleaver explains why Vietnam and Sri Lanka are now the leading lights of the sector.
Over the past few years frontier markets have performed well, and so passive investment strategies have done well for investors. However, following this strong performance and the upgrade of UAE and Qatar to emerging market status, the landscape has changed in favour of an active approach. Kuwait Passive strategies are an inefficiently constructed vehicle. For example, Kuwait represents 27% of the MSCI Frontier index. Despite the country's strong fiscal position, GDP growth of 3% has fallen short of other Gulf Co-operation Council peers, and is unattractive relative to other parts of ...
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