Frontier Market Investing: Why it Pays to Go Active

Continual changes in frontier and emerging indices put a premium on active managers' skills

Lena Tsymbaluk 24 September, 2018 | 1:56PM

Dubai cityscape Emerging Markets

In the last four years, the frontiers market index has been turned on its head and active managers have had to react changes in how countries are classified. Despite these changes and complexities, Morningstar believes it pays to go active when investing in frontier markets.

One of the key index providers, MSCI, has made a number of changes in recent years that will affect liquidity, benchmarking and the investment remit of emerging markets/frontiers funds.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Frontiers Ord80.10 GBP-3.49
HSBC GIF Frontier Markets BC8.42 USD-2.00
Templeton Frontier Markets W(acc)USD9.04 USD-3.02
X S&P Select Frontier Swap ETF 1C GBP695.83 GBP-7.96

About Author

Lena Tsymbaluk  

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