Deep Dive: Industrialisation and digitisation will help frontier markets

Down -5.4% year-to-date

Ramzi Sidani, frontier market fund manager at HSBC AM, dives into frontier market equities

After a strong performance in 2021, frontier markets are behaving year-to-date exactly like they should be: resilient and exhibiting low correlation with other asset classes. Frontier markets are down only -5.4% year-to-date as of 11 March compared to -11.7% for emerging markets and -11.9% for the MSCI World index.   The fact the frontier asset class is formed, unlike emerging markets, by a large number of countries with no single country commanding the lion's share, ensures diversification is always maintained. Another important factor that has helped frontier market performance year to...