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Frontier-Market Funds Pour in Boosted by Fixed Currencies

Frontier markets with managed exchange rates from Dubai to Vietnam are luring equity investors fleeing the currency turmoil in larger developing economies.

Funds that buy shares in the less-developed nations posted inflows of $407 million in the first six weeks of 2014, while $21 billion was pulled from emerging markets, EPFR Global data show. A gain of about 3 percent in the MSCI Frontier Market Index this year pushed stocks to a 2008 high Feb. 19, even as slower China growth and the Federal Reserve’s plan to trim bond buying weighed on developing and developed-nation gauges.