- Frontier markets are less developed and higher risk than emerging markets but have stronger growth potential
- BlackRock Frontiers Investment Trust offers diversified exposure to this area
- It has been underperforming but has a strong long-term record
IC TIP:
Buy
at
120.23p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
- Long-term growth potential
- Attractive yield
- Low valuations
- Discount to NAV
Bear points
- Recent underperformance
Companies in countries with fast-growing economies and increasing middle classes should have scope to grow faster than developed economies. But while the developing world is vast, most emerging market funds are dominated by companies listed in North Asia, notably China, South Korea and Taiwan, which account for 65 per cent of MSCI Emerging Markets Index.