BlackRock's Vecht beats EM heat with frontier markets

BlackRock's Sam Vecht believes frontier markets are offering better value than overcrowded and overheating emerging markets.

Vecht says a lack of investor appetite in accessing frontier markets is ensuring valuations remain at low levels, and he expects these markets to take off in the next five years. Two months on from the launch of the £92m BlackRock Frontiers investment trust, Vecht is 93% invested and has built up 44 positions in 18 markets. “Frontier markets are offering high growth companies and typically stocks trade on seven or eight times earnings,” says Vecht. “We are focusing on fast-growing companies less correlated to world markets.” However, investing in frontier markets does carry the ...