Franklin Templeton Frontier Market Fund
Franklin Templeton is taking advantage of historically attractive global share prices, and they are launching a funds that invests in frontier markets to to this.
The FTIF Templeton Frontier Markets Fund will invest primarily in the smaller, less accessible and less developed countries that have the potential to grow at a rapid pace and become tomorrow’s emerging markets.
Frontier countries and markets are developing economies with relatively young, undeveloped equity markets. While there is no strict definition for what exactly constitutes a frontier market, they will typically fall outside the emerging market indices such as the MSCI Emerging Markets Index. Frontier stock markets and countries tend to comprise the African, Middle Eastern, and also some of the smaller European and Asian markets.
With an estimated combined market capitalization of over $1.7 trillion, frontier stock markets are in the early stages of their development and they are growing towards entry into the emerging markets indices. These countries offer the prospect of high growth rates as well as returns, together with low correlation to the more developed and mainstream emerging and developed markets.
The Frontier Markets Fund will offer global investors the opportunity to invest in a “younger , rapidly growing generation of emerging markets” and to also diversify their portfolios due to the lower correlation of frontier markets with the global markets.