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Wednesday, 28 December 2016

2016 was not a great year for frontier markets

2016 was not a great year on the frontier: Frontier markets were one of the world’s worst-performing asset classes in 2016, the Wall Street Journal (paywall) reports, noting that the 22-nation MSCI Frontier Markets Index rose 1.4% in the year to Monday, while the MSCI Emerging Markets Index is up 8.4% and the Dow Jones has returned 18% in the same period. Investors pulled USD 840 mn from frontier market funds through 21 December, the newspaper adds. The newspaper contrasts the views of fund managers actively investing in specific themes and individual FMs with those who “expect frontier markets to rebound only after a long and steady recovery in developed and emerging countries, which would eventually lead assets to trickle down into these small markets.”

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