Value can still be found in frontier market equities
Frontier equities have posted mediocre returns and fund selectors are reducing their allocations – but a few retain faith
Frontier equities have posted mediocre returns and fund selectors are reducing their allocations – but a few retain faith
Fund-of-funds portfolio delivers ‘very disappointing’ performance as it shifts to direct equities
Despite her best moves, prime minister’s visit fails to renew interest in the 54-country continent
Emerging Europe shareholders offered switch into trust with a different investment universe
Blackrock manager Sam Vecht has suffered a further blow as the frontier markets fund he manages with Emily Fletcher is downgraded, less than two weeks after an investment trust he co-manages revealed it is winding up.
Mark Mobius has formally confirmed former Franklin Templeton colleagues Carlos Hardenberg and Greg Konieczny as founding partners in his eponymous boutique firm, as details of the planned emerging and frontier markets fund are revealed.
Blackrock fund managers Sam Vecht and Emily Fletcher are already in the process of introducing emerging market stocks into the Frontiers Investment Trust following an expansion of its investment universe less than a week ago, as they seek opportunities in the “forgotten” countries of both indices, which show reduced correlation with mainstream markets.
The board of the £313.3m Blackrock Frontiers Investment Trust has called a general meeting for shareholders to vote on expanding the fund’s investible universe to emerging markets following a spate of country reclassifications in MSCI indices.
After several tough years, things have been looking more positive for investors in emerging markets over the last couple of years, with the region outperforming its developed market peers in both 2016 and 2017.
With a return of 31.9% in dollar terms, the MSCI Frontier Markets Index achieved its highest gain in 10 years in 2017, continuing the theme of emerging markets outperforming their developed peers.
Frontier market funds are leading Europe’s emerging market fund pack with Charlemagne’s frontier market 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.