Barclays Global Investors Frontier Markets Fund offers clients a unique opportunity to invest in pre-emerging markets which have been identified as having high growth potential. Investing in the 16 frontier markets, which include Kazakhstan, Bulgaria, Sri Lanka, Bahrain and Estonia, offers a cost-effective, index-based investment solution.
Integral to BGI’s investment process is the balance between risk, return and transaction cost control – transaction costs are higher in frontier markets than in developed markets. BGI mitigates the issue through sophisticated trading strategies, controls on turnover and selective exclusion of highly illiquid securities – assets which cannot quickly be converted into cash.
Demographics in the USA indicate that the number of people reaching retirement age is growing. This means the country’s dependency ratio – the number of individuals over the age of 65 compared with those of working age – will be higher than ever. As a result, BGI’s research signals the demand for government subsidies towards healthcare is set to increase, posing a strain on resources.
BGI is a thought-leader on this key social issue, recognising that it is vital for governments to explore innovative investments.
