To be sure, frontier markets are still a very volatile asset class and investors should be mindful of the typical risks associated with these exotic markets, which are still at early stage of economic development. As such, while frontier markets are worthy of an allocation, exposures should be small, with the exact amount largely a function of an investor’s risk tolerance.
Sources: Linked to throughout Post, MSCI, Bloomberg, BlackRock research
Kurt Reiman is a Global Investment Strategist at BlackRock who works directly with Russ Koesterich. He contributed to this post by providing research and investment insights.