Bringing you live news and features since 2006 

Research from Dragon Capital finds UK investors target frontier markets for diversification but want ESG data


UK institutional investors and wealth managers are increasingly looking to frontier markets for diversification but want more ESG data if they are to boost allocations, new research from Dragon Capital shows.

The study by Vietnam’s largest independent asset management company with UK investors who collectively have over USD105.25 billion in assets under management found almost all see frontier markets as vital for diversification.


Almost six out of 10 (59 per cent) strongly agree and 37 per cent slightly agree that frontier markets provide attractive diversification benefits from emerging and developed markets. Around 89 per cent questioned agree that frontier markets offer some of the best opportunities to find hidden gems in the investment management world. 


Nearly nine out of 10 (89 per cent) say ESG credentials are important when investing in frontier markets, with 26 per cent describing them as very important. The study found 89 per cent expect the importance to increase over the next three years.

Investors however want more ESG data if they are to increase allocations to frontier markets – 89 per cent say if frontier markets and funds investing in them had more data to illustrate their ESG credentials and willingness to make improvements inflows will grow.


Investors believe fund managers will work harder to help companies raise their ESG credentials – 85 per cent expect an increase in fund manager intervention over the next three years.


In terms of which factors were most important when selecting a frontier fund manager, all investors chose the longevity of the fund with the manager’s track record and liquidity also highly rated. 


Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by