Market Outlook | Papers
In the first half of 2014, the MSCI Frontier Markets Index substantially outperformed its actively managed peer group. The degree of this outperformance is deeply ahistorical for major equities classes and poses several implications for manager selection and evaluation. This paper examines the unique structure of this market rally in an effort to better understand the frontier markets environment, assess the complicated interplay between index structure and performance measurement, and discusses how allocators should evaluate and respond to these special circumstances.