Market classification is an index rebalance on the country level and generally refers to shuffling countries among three baskets: Developed Markets (DM), Emerging Markets (EM) and Frontier Markets (FM).
In light of strong performance, we revisit this topic that we last wrote about in April.
Emerging Market investors are extending their “small” bet down to Small Caps and the Frontier Markets. We discuss potential reasons behind their outperformance.
Now could be the time to get in before markets fully discount the potential growth and better assess the risk.