Hidden gems: Exploring frontier markets

clock
What do frontier markets offer?
Image:

What do frontier markets offer?

Frontier markets - those considered too risky, illiquid or small to enter most emerging markets indexes - can offer huge rewards for those investors brave enough to go exploring

Investors' nerves were tested in 2018 as global markets plummeted, with news headlines dominated by the escalating tensions between the US and China. Frontier markets were no exception. The MSCI Frontier Markets index experienced a larger decline than its developed peers, dropping 11.2% versus a fall of 9.2% for MSCI Emerging Markets and 3.2% for the FTSE All World, in sterling terms. The magnitude of this fall was particularly surprising, since frontier markets usually have a low correlation to other global stockmarkets. Frontier markets are developing economies which are considered ...

To continue reading this article...

Join Investment Week

  • 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

Vietnamese equities tend to outperform Chinese equities when Chinese equities underperform the rest of the world

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

Divergence from emerging markets

Kathleen Gallagher
clock 12 August 2022 • 4 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Industry Voice: Mapping China's recovery

Industry Voice: Mapping China's recovery

2021 was a record year for dividends around the globe Our EMEA ETF Investment Strategy team believes that while Chinese equities may need to consolidate in the short-term, the recovery since the March 2022 low remains on track.

Franklin Templeton
clock 03 August 2022 • 3 min read
Trustpilot