After the massive outflows from emerging and frontier markets seen in the period since 2022, the situation with regard to interest rates, defaults and currency valuations has become more positive in 2024. In addition, investor confidence has strengthened as a result of favorable developments in countries such as Egypt, Nigeria and Kenya.

According to Jetro, active investment approaches with a rigorous investment process have prevailed over passive solutions in the difficult market environment of recent years. Investing in emerging and frontier markets via an index inevitably exposes investors to countries where the market expects defaults or currency devaluations, for example, but which are not yet reflected in the benchmark instruments.

At the same time, there are markets that are not part of the benchmark but may offer interesting investment opportunities. Jetro recommends an active approach with a broadly diversified investment universe in terms of countries and instruments to avoid missing out on these market opportunities.

Find out more below (article in German).