How have frontier market changes impacted portfolios?

Increase in 'crossover' economies

Changing classifications among frontier markets have impacted how active managers build their portfolios, writes Lena Tsymbaluk, analyst - manager research at Morningstar.

Index provider MSCI has made a number of alterations in recent years, which involved countries such as the UAE and Qatar being promoted to the mainstream MSCI Emerging Markets index.  Chetan Sehgal: TEMIT rebuilding team ahead of EM rebound The two countries accounted for 30%-40% of the MSCI Frontier Markets index in 2014 and impacted the liquidity and market cap of the index.  Pakistan, which was about 10%, was reclassified as a mainstream market in June 2017. Argentina will be reclassified as an emerging market in May 2019.  In addition, MSCI announced that it will include Kuw...