Frontier Markets ETF

 

 

Templeton Frontier Markets Fund

This recently launched frontier market fund seeks long-term capital appreciation and invests in securities of companies that are located in frontier market countries. Frontier countries are defined as smaller, less liquid, and less developed countries (when compared to emerging markets) that are considered to be in the early stages of development.

According to Franklin Templeton, Frontier markets, which many experts and investors view as the next generation of emerging markets, have continued to attract increased interest from global investors due to frontier countries impressive growth rates and also low correlation to developed and emerging markets, said Mark Mobius, Ph.D., who is the executive chairman of Templeton Asset Management, Ltd. and the Fundís portfolio manager. Today, frontier stock markets resemble what emerging market countries, like Russia, Brazil, China, and India looked like around two decades ago when we introduced our first Templeton emerging markets fund.

Mobius continued by saying that many frontier market countries have rapidly expanding consumer markets that are rapidly increasing their domestic demand for consumer banking and credit cards, cell phone services, and also a whole range of consumer products. In addition, a number of these frontier countries are leading producers of gas, oil, and precious metals so they are well positioned to continue to benefit from the high global demand for these resources. As the economies of frontier market countries continue to rapidly expand, they will continue to increase investments in infrastructure, while also offering valuable opportunities in the construction, banking, transportation, and finance and telecommunications industries.

 

 

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