Role reversal: Investors exit frontier markets on GEM revival

Investors are moving out of frontier markets and in to global emerging market vehicles, including BRIC funds, to capture a reversal in their fortunes.

The MSCI Frontier Markets index was up 27% over one year to 22 April 2014, while the MSCI BRIC index fell 10.2% over the same period. A year on, however, performance has now reversed - frontier markets fell 9.7% over the year to 22 April 2015, compared to a rise in the MSCI BRIC index of 11.2%. The wider MSCI Emerging Markets index rose 3.1% over the same period.  This turnaround has meant frontier funds, which were rapidly accumulating assets this time last year, are now seeing outflows.  Mark Mobius' soft-closed Templeton Frontier Markets fund has seen assets fall from $2.1bn a y...