Deep Dive: Frontier markets require caution due to 'barrage' of shocks

Divergence from emerging markets

Kathleen Gallagher
clock • 4 min read

Since the beginning of the year, frontier markets have underperformed the global index and while some experts who spoke to Investment Week said there may be some opportunities they advise caution, while others are outright avoiding the area.

The MSCI Frontier Markets index has lost 7.8% since the start of the year to 8 August, while the MSCI World All Cap has lost 3.5%, according to FE fundinfo. Performance aside, there are several fundamental reasons to be nervous about frontier markets this year. "To become optimistic about such economies we have to believe we are looking at a world where monetary policy will remain loose, geo-political disputes scarce and the inflationary environment benign," explained Charlie Parker, managing director at Albermarle Street Partners. It is safe to say that is not the current picture....

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Trustpilot