TAA frontier market allocations total $19.9 billion

According to Bradley Durham, managing director at EPFR Global, total assets invested in frontier market strategies totaled $19.9 billion as of July 31, up from $11.6 billion at year-end 2007 and $2.9 billion at year-end 2005. Some of the money flowing to frontier markets has come from broader emerging market strategies. Allocations to these markets as part of global emerging markets strategies have increased to 2.6% in 2008 from 0.9% in 2004.

Among investors either considering or already investing in these equity markets are the $160.3 billion California State Teachers’ Retirement System, Sacramento, and the $15.5 billion Kentucky Retirement Systems, Frankfort.

The biggest managers putting money to work in them include T. Rowe Price Group Inc., Baltimore, with $878 million in frontier markets; Acadian Asset Management, Boston, $150 million; and Franklin Templeton Investments, San Mateo, Calif., $100 million.