For those allocating to the broader EM space, are you finding better risk-adjusted value in established EM giants or are the smaller, more volatile Frontier Markets offering more compelling opportunities given current macro conditions?
I'm still leaning into EM core. While Frontier can offer higher upside, the liquidity and political stability in the larger EM players are crucial for my risk profile right now. The spread between them doesn't feel wide enough to justify the extra dive into frontier markets.
Interesting question. I've been dipping my toes into some specific Frontier markets, mainly those with strong commodity linkages or reform-minded governments. It's definitely more volatile, but I'm seeing valuations there that you just can't find in the EM giants anymore.