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Feature: New markets, new outlooks
02 February 2010
As the emerging markets move into the mainstream, so a new asset class is taking its place as a source of growth and value
Read more:
[emerging markets]
[frontier markets]
[GCC]
[MENA]
[MSCI]
[UAE]
[Qatar]
[Saudi]
The search for investment returns is bringing about a fundamental review of attitudes to emerging markets, which last year saw unprecedented inflows. This has brought about a subtle transformation of the asset class into a mainstream investment, as portfolio managers have become more familiar with the asset class. However, the knock-on effect has seen the arrival of a new generation of emerging markets, which are now described as frontier markets.
The distinction between the two asset classes is necessarily unclear, and open to different interpretations. For the purposes of the international investors, who have to trawl through hundreds of markets across the globe, the MSCI International Indices are invaluable tool. The distinction between an emerging market and a frontier market, though often subjective, plays a key role the portfolio manager’s decision-making process, and has the power to drive significant fund flows to any given market.
MSCI Barra uses three...
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