Frontier markets accelerate their equity lead

Equities going upFrontier market equities extended their lead over emerging and developed market indices in July, according to a leading index provider. The Russell Frontier Market index gained 5% in the period from July 1 to August 6, meaning the index has risen more than 15% so far this year. In contrast, the Russell Emerging Market index is up 11% this year and the Developed Europe index is up 3%. The largest country component of the Russell Frontier Market index is Kuwait and the third-largest is Qatar, which has not been upgraded to an emerging market as it has by rival index providers MSCI and S&P Dow Jones Indices. Russell noted that the gains came despite geopolitical disruptions such as the crisis in Ukraine and the Israel-Gaza conflict. More recently, the rise of the Islamic State in Iraq and Syria (ISIS) and atrocities in Kurdistan have hit the headlines and threatened further instability. However, Russell analysts are so bullish on equities that they would view such turbulence as an opportunity to extend positions, and not cut them. “We think any pull-back from current market positions will likely offer a buying opportunity, so we think recent world events needn’t shake your focus on your investing goals,” says Andrew Pease, Russell Investments global head of investment strategy. ©2014 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.

SOUTH AFRICAN ROUNDTABLE: Spirit of Ubuntu

Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.