Frontier Markets 2015 Summary
2015 has come and gone; you can go on to MSCI’s website and look at how the Frontier Markets’ index did or the FTSE website for the same. As our regular readers know, we have issues with both that we have covered in several posts; one of which for FTSE is here and one for MSCI here.
However, we thought it would be instructive to look at what the best performing stocks in our universe were in 2015 as well as how our major markets did. The top 10 markets in 2015, in USD terms are shown below. Returns are shown in local currency terms as well as USD terms.
Really, only three countries had a good year; Jamaica, Malta, and Nepal. Two countries had a mediocre year; Palestine and Estonia. Other than that it was a bad year. Jamaica was a rip-roaring success in 2015, we wrote about the country in November 2014. On the flipside, the bottom 10 countries in our FM universe fell between -58% and – 29%.
In our universe, we looked at the top 5% and bottom 5% stock performers for 2015. The total list is at the end of this piece. In general, small cap equities outperformed other securities.
In terms of industry, we’ve provided a breakdown below. Other than the unsurprisingly poor performance of metals & mining industry, most industries had fairly even distribution between top performers and bottom performers. Transportation, Consumer Discretionary were skewed to positive performance and financials were skewed to negative performance.
2015 was a challenging year, and 2016 has started off continuing the themes of 2015. However, there remain a number of countries that are well-positioned to continue growing on the back of low energy prices and a domestic-focused economy.
The Top 100 Performers are shown below
The Bottom 100 Performers are shown below