Emerging markets funds: A safer route to the frontier

With emerging markets struggling, brave investors are exploring the riskier frontier markets in search of profits. Fortunately, there's a safer way to stake your claim.

Jim O'Neill first coined the term Brics' (Brazil, Russia, India and China) in 2001, when he was head of Goldman Sachs global economic research. He has invested there ever since. So last year must have been a disappointing one for him: the Bric index fell by about 25% in 2011, as did the MSCI Emerging Markets index.

Now investors are being told to look further afield to frontier' markets. These are countries that have stockmarkets but, due to their size, inexperience or political instability, do not qualify for emerging-market status. Vietnam, Argentina and Tunisia, for example, make the cut.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.