Emerging Markets Report: Kenya crisis casts shadow on hot frontier …

… “Great Rotation,” but mutual funds that invest in emerging markets have reportedly seen more than $2 billion in outflows so far in 2013, while funds focused on frontier markets, often referred to as “pre-emerging” markets .

GIBS Information Centre / GIBSIC‘s insight:

Kenya, Mobius, – “Franklin Templeton emerging markets guru Mark Mobius last month identified Africa as the big play for frontier markets, particularly Kenya and Nigeria. As investor money flooded into the space, securities that track frontier markets rallied in July, outpacing emerging markets counterparts more weighted to China and Brazil.   –  The hostage situation in Kenya is a warning of the heavy risks involved in frontier markets. Emerging-market expert Usha Haley said investors need to be “cautious and operate as they would in areas with other Islamic militia activity.”

Tourism in Kenya will be affected in the short term, she said, and we’ll have to find out more details about the attackers.  “We do not know if this was a last gasp or resurgence of terrorism,” said Haley, who is also professor and director of the Robbins Center for Global Business and Strategy at West Virginia University.”

See on frontier-markets.rsspump.com