Frontier Markets Have Low Correlation To Emerging Markets

In recent weeks, emerging markets such as the BRICs have become more like submerging markets. One way investors can diversify their portfolios is to consider including equities from frontier markets. However frontier stocks are not for the faint of heart. These markets tend to highly volatile and can decline sharply for a variety of reasons …

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A Review of Frontier Markets Investing

Frontier markets are markets that are considered less developed than emerging markets. These markets include countries such as Sri Lanka, Ghana, Ukraine, etc. Of the 33 countries that MSCI classifies as frontier markets 24 are included in the MSCI Frontier Markets Index. The major index provider classifies the following markets as Frontier markets: Click to enlarge …

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Differences and Similarities Between Major Frontier Market Indices

Frontier markets refer to all markets that are not developed or emerging. These markets include places like Ecuador, Nigeria, Namibia, Iran, etc. The following map shows the countries that are considered as frontier markets by the global investment community: Click to enlarge Source: WSJ Graphics According to a research report by Ben Garland and Kelvin Dell of Blackrock, …

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Which Frontier Markets Companies Are Multinationals ?

Up until a few decades ago the term “Multi-National Company” or MNC generally represented Western companies that were true multinationals and operated across the globe. In the recent decades, as emerging countries such as Brazil, Russia, India and China grew stronger economically some of firms from these countries emerged as the new emerging multinationals. A few …

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Caution Warranted on Frontier Markets

Frontier market stocks have soared so far this year. Compared to emerging and developed markets the performance of frontier market stocks is exceptionally good year-to-date(YTD). As of Aug 6th, the MSCI Frontier Market Index increased by 19% YTD while the MSCI indices for Emerging and Developed Markets were up by only 6% and 2.2% respectively. The …

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