Frontiers markets safer that you think claims BlackRock’s Sam Vecht


Originally published at:
With a better recent performance than Emerging Markets and less volatility than developed but on a low overall valuation, could now be an opportune time to boldly go to new frontiers? Fast Facts Launched in Dec. 2010 Recently issued a £15 million of new shares Less volatility, which is a measure of risk, than the…


Interesting how Vecht is changing the discourse on frontiers to it being less risky and less volatile than the FTSE 100. That is a bit of a surprise.

I’m not sure what to make of this yet and if I can quite believe that frontier markets really are less volatile over the long term as this article implies.


I don’t know what you’re confused about @wickedinvestor the figures speak for themselves. I wonder if it’s just that you haven’t had a look at emerging markets/frontier markets, or more likely you assumed that frontier would perform much worse than emerging (as I did if I’m honest). ting

The dividend is a real surprise to me, I never imagined it would ever be so high or have such incredible growth.

I think it sounds really interesting but I agree it’s one you’ve got to lock away.


I agree that Vecht is a really good manager but I think I’d prefer to wait a while before investing here because I think emerging and developed markets have further to fall and there will be a better opportunity to buy in to this trust on a wider discount.

I am very surprised Frontiers is generating such a high dividend - it’s not an area you expect to be paying out so much to shareholders.

One thing I don’t get about these risk warnings that analysts including seem to constantly pump out, is this trust is surely suitable for pensions who need yield/income from their pension savings. 4.4% is a lot, it shouldn’t matter to them if the share price is volatile, it’s the volatility of the income that matters, and providing there isn’t much this is perfect for them surely.


It is very difficult to know when th market has bottomed out or topped out @alexwind. I think it is better to buy a good fund with a good manager because if you hold it for the long run, the majority of your returns will come from what he or she has done with the investment portfolio.

Also, not forgetting that dividend which like others here is a surprise to me but it does mean that all the while you’re invested here you’re getting a handsome dividend.

I think he is probably the most astute investor in places like Pakistan (where my family is from), the Middle East and so on.


This is just a little to colourful for me. I prefer to get my emerging market exposure through a global fund that can allocate to emerging markets when the time is right,

The Frontiers trust is certainly one of the best trusts for emerging markets, perhaps along with Pacific Assets and Scottish Oriental, but I’d still prefer to get my exposure through a global product.


There aren’t any global funds I can think of that invest in to Frontier markets @pauls. In fact there’s only 3 or 4 funds that I am aware of that invest there.

I think this is a good option for someone looking for some growth, maybe even people needing an income though I’d want to check on how secure the dividend is first.


If you want exposure to global frontier markets - then you won’t have much choice, and I don’t imagine the global growth trusts will have any meaningful exposure @pauls.
The latest results show reasonable revenue reserves and the dividend is just covered by earnings so the yield is probably ok. The trust doesn’t seem over exposed to oil exporting gulf states and looks well diversified.
I’ve owned some for awhile and will probably hold for the yield whilst waiting for capital growth.


I think this is worth tucking away and forgetting about for a few years, and like others have said the yield on it is fantastic and such a surprise for a supposedly risky investment.