Still value in frontier market equities
Despite posting mediocre returns, some fund selectors are keeping the faith in frontier equities
Despite posting mediocre returns, some fund selectors are keeping the faith in frontier equities
Frontier market funds are leading Europe’s emerging market fund pack with Charlemagne’s offering at the top, according to FE Analytics.
Frontier market equities saw the largest net inflows for a very long time in June, suggesting the interest in developing economies’ stock markets is broadening.
Specialist China and Asian markets asset manager Harvest Global Investments has become the first firm to qualify funds for the Switzerland-Hong Kong Mutual Recognition of Funds (MRF) scheme.
With a string of countries having been promoted from frontier market to emerging market by index provider MSCI in recent years, investors need to ask themselves the question: are frontier markets still a viable asset class? And if they aren’t, is that actually a problem?
European Wealth has added to its exposure in emerging and frontier markets resisting the current investor temptation to “sit on your hands” and weather any upcoming storms.
With more of a shudder than a surge, Pakistan formally returned to the MSCI emerging markets index on Wednesday after nine years as a frontier market, a day after foreign investors sold up in the biggest net outflow since July 2013.
Frontier markets are growing at a much faster pace than emerging markets, according to Mark Mobius, executive chairman of the Templeton emerging markets group.
Amr Seif is head of asset management at EFG Hermes, a firm that has traditionally focused its expertise on the Middle East and North Africa, but is now expanding into other territories.
Oliver Bell, manager of the T. Rowe Price Frontier Markets Equity Fund and T. Rowe Price Middle East & Africa Equity Fund recently visited Iran. Here he outlines why many of the assumptions investors have about the country may need a major upgrade.
Typically shunned by investors, emerging markets may be ready for a second look in 2016.
International investors will be able to take a 100% stake in Vietnamese companies when the country scraps its foreign ownership limits in September, which T. Rowe Price’s Oliver Bell said will remove reluctance to invest in the market.