The upgrade of two major frontier markets to emerging market status led to a significant increase in turnover for the HSBC Frontier Markets fund last year.
Andrew Brudenell (pictured), manager of the soft-closed $423m HSBC GIF Frontier Markets fund, said turnover increased to 60% last year compared to 25% for 2012 and 2013. This was due to the upgrade of Qatar and United Arab Emirates from the MSCI Frontier Markets index to Emerging Markets. Brudenell said: "There was a huge amount of change last year which started when countries were upgraded by MSCI and you saw valuations go crazy. This resulted in us taking money off the table which we had not expected to do so quickly. "About 48% of the portfolio remains the same, it is just certa...
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