News:Argos:Emerging markets put China, India in the shade
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MSCI defines the emerging markets as Argentina, Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Hungary, Israel, Jordan, Morocco, Poland, Russia, South Africa, Turkey, China, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines, Taiwan and Thailand.
Underneath those markets are the frontier markets, under which MSCI groups Bulgaria, Croatia, Estonia, Kazakhstan, Romania, Slovenia, Ukraine, Kenya, Mauritius, Nigeria, Tunisia, Lebanon, Bahrain, Kuwait, Qatar, Oman, United Arab Emirates, Sri Lanka and Vietnam.
Hopkins says the correlation of emerging markets to developed markets has increased in recent years, and frontier market investment now gives investors the non-correlation that emerging markets used to give.
"We find that -- certainly in our patch, which is eastern Europe -- the frontier economies are providing what we used to expect and look for in terms of GDP growth multiples, more so than the emerging markets.