Barings' Levy: Frontier markets are less volatile than EMs

Some investors love the return potential of frontier markets, while others consider them volatile and expensive.

But despite recent volatility, frontier markets have more than doubled the return of emerging markets year to date, with the MSCI Frontier Market index up 16% versus a 6% return from its emerging market counterpart. Michael Levy (pictured), manager of the £35m Barings Frontier Markets fund, told delegates at Investment Week’s Funds to Watch event why the asset class’ risk/reward characteristics mean it is still an attractive place to be. Why are people put off by frontier markets, and how would you allay their concerns? The most common reasons investors give are fear of illiquidit...