FINRA Issues Investor Alert Regarding Frontier Funds (with Lofchie Music Selection)

FINRA issued an investor alert titled "Frontier Funds - Travel with Care."

The alert cautions investors who are interested in frontier markets to consider carefully the heightened risks in these markets. The notice explains that, while there is no precise definition of a frontier market, frontier funds invest generally in companies located in countries with developing securities markets, such as Argentina, Lebanon, Nigeria, Slovenia and Vietnam.

Additionally, the alert provided tips for investors to consider before investing, which included the following:

• know which frontier markets the fund invests in, since risk factors vary by country and no two countries share identical risk elements;
• monitor changes in index components because countries included in a frontier index can change over time;
• geopolitical and currency risks are real: some frontier markets are located in parts of the world with unstable political and economic environments;
• factor in costs and fees; and
• consider performance history, since frontier funds are relatively new and most have limited performance histories.

Lofchie Music Selection: "The Final Frontier."

See: FINRA Investor Alert: "Frontier Funds - Travel with Care."