Frontier Market ETFs Have 72% Exposure to Oil-Dependent Countries (FT Adviser)

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.

Similar Posts:

• 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)
• The “Next Eleven” and the World Economy (The Asset)
• Asian Frontier Markets See a Strong Rebound in August – Asia Frontier Capital (AFC) – August 2022 Update
• Will Frontier Markets Follow the Same Emerging Market Pattern? (The Telegraph)
• Russell Frontier Markets Equity Fund’s Manager Sees Neglected Gems (WSJ)
• Are There Greater Opportunities In Asia’s Frontier Markets Than in China? (FT)
• Which Countries Are Most Influenced By China? (Oilprice.com)
• Nigeria’s Forte Oil Plc and EcoBank Transnational Inc (ETI) Added to MSCI’s Frontier Market Index (AllAfrica.com)
• Frontier Markets: 2019 Outlook (FIS Group)
• Nigeria, Argentina and Vietnam Top the Frontier Markets Sentiment Index (WSJ)
• 2017 Global Retail Development Index (ATKearney)
• Webinar – Asian Frontier Markets Update on Friday, 28th October 2022
• China, IMF Bailouts for Poorer States Ease Bearish Sentiment Towards Emerging Markets (SCMP)
• Investors Exit Africa for Other Frontier Markets (WSJ)