The MSCI Frontier Markets index outperformed the MSCI Emerging Markets index throughout 2013 and much of 2014; but since last October and as oil prices started to plummet, the former has fallen by 9.4% while the latter has risen by 3.7%.
Roberto Lampl, head of Latin American investments at Alquity Investment Management, was quoted by FT Adviser as saying that passive investors in frontier market ETFs will typically have 72% exposure to oil-dependent countries, such as Kuwait, Qatar, the United Arab Emirates and Nigeria. The remaining 28% is composed of mostly Asian and African countries, such as Laos, Myanmar, Cambodia, Vietnam, Bangladesh, Sri Lanka, Pakistan and Kenya.
“Countries such as Kuwait and Nigeria will suffer from falling oil prices as lower government expenditure, lower investment and, in some cases, depreciation in their home currency impact their economies.”
To read the whole article, Frontier universe to shine, go to the website of FT Adviser.
- How the MSCI Emerging Markets Index Changes Will Impact Investors (P&I)
- How MSCI’s Removal of Qatar & UAE Impacts the Frontier Markets Landscape (MM)
- Frontier Markets: 2019 Outlook (FIS Group)
- Nigeria’s Forte Oil Plc and EcoBank Transnational Inc (ETI) Added to MSCI’s Frontier Market Index (AllAfrica.com)
- 2017 Global Retail Development Index (ATKearney)
- Fund Managers’ Opinions on the UAE and Qatar’s Emerging Markets Upgrade (The National)
- Frontier Markets: Small, Concentrated & Misunderstood (Financial Advisor)
- 8 of 10 Fastest Growing Markets are Frontier Markets (Mobius Blog)
- Will Frontier Markets Follow the Same Emerging Market Pattern? (The Telegraph)
- Results of MSCI 2017 Market Classification Review (MSCI)
- The “Next Eleven” and the World Economy (The Asset)
- History Says Investors Get Gored by MSCI Upgrades (Reuters)
- Russell Frontier Markets Equity Fund’s Manager Sees Neglected Gems (WSJ)
- Frontier Markets: One of the Last low-Correlated Asset Classes? (Commerzbank)
- Nigeria, Argentina and Vietnam Top the Frontier Markets Sentiment Index (WSJ)