In new statements on the extent of greenwashing in the fund management industry, Desiree Fixler highlights some uncomfortable truths about sustainable investing.
It decided to release this index ahead of the fleshed-out frontier range, as there are fund managers now developing exchange-traded funds on the back of it. In the fourth quarter of this year, FTSE plans to release country and regional indices covering the same markets.
MSCI and Standard & PoorÆs already offer frontier-market indices, but the FTSE offering has its differences, following the same methodology underlying its developed and emerging-market products, says Andrew Buckley, executive director in London. But criteria are less onerous.
FTSE has 21 criteria that a market must pass to be included in its developed-market indices, and 15 for emerging markets. For frontier markets, it is sticking to just the most basic five requirements, including an independent regulatory authority, free repatriation of capital, basic transparency in pricing and reporting, basic clearing and settlement facilities, and a minimum free-float capitalisation of $750 million.
A feature on frontier markets in the July edition of AsianInvestor magazine notes $18 billion now tracks 145 markets that can be considered frontier, with most of that money from institutions and family offices. Depending on how they are counted and measured, global frontier market cap ranges from $465 billion (says EPFR) or $1 trillion (says FTSE).
The 50 stocks included in the FTSE Frontier 50 come from Vietnam (Asia Pacific); Jordan, Oman and Qatar (Middle East); Kenya, Mauritius and Nigeria (Africa); and Bulgaria, Croatia, Cyprus, Estonia, Romania and Slovenia (Europe).
The fully developed frontier series will also include Bangladesh and Sri Lanka (Asia Pacific); Bahrain (Middle East); Botswana, Ivory Coast and Tunisia (Africa); and Lithuania, Macedonia, Serbia and Slovakia (Europe).
Some countries that S&P and MSCI consider to be frontier markets, such as Pakistan and United Arab Emirates, are regarded as emerging markets by FTSE.
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.