“…Frontier market valuations have fallen significantly over the past two years and are attractive, according to BlackRock, which is launching an investment trust to take advantage of the opportunity.

“We think it is the right time to be in frontier markets as they have not yet reached their potential,” said Sam Vecht, head of BlackRock’s emerging Europe, Middle East and Africa equity team, and fund manager.

“They are the fastest growing countries in the world in terms of GDP, have a lower debt burden than emerging and developed markets and show low correlation to both.”

The BlackRock Frontiers Investment Trust, which aims to raise between £80m-£100m from institutional investors, has an expected yield of more than 3 per cent. The fund will be more heavily weighted to countries such as Qatar, where Mr Vecht likes financial stocks, and Nigeria with exposure to financials and consumer companies. It will be less exposed to companies in countries such as Pakistan, where political risk runs high, or Vietnam and Tunisia.

Investors will be offered an exit out of the fund at the end of five years at net asset value less costs but can buy and sell their shares on the open market at any time during this period. The placing closes on December 10 and the fund will be listed in London the following week.”