Fear on the wild frontier as riskier stock markets left trailing

Fear on the wild frontier as riskier stock markets left trailing

"Flows have been negative for the last three years," Fergus Argyle, assistant manager of frontier at Somerset Capital Management, told Reuters."On the one hand it's a bit alarming, but on the other hand it's also quite encouraging .. there's a lot of pain in the market already and a lot of capital has left the market and we don't see a significant need for change for sentiment to really improve," Argyle added.The draining of cash reflects disappointment with an asset class that has frequently failed to compensate for the added risk of markets prone to crises or capital controls.Since the COVID-19 pandemic triggered global market falls in late February, investor disappointment has intensified.MSCI's Frontier Markets Index, encompassing a diverse group banded together due to scarce liquidity, lack of size and