Commonplace labels applied across global markets substitute simplicity for opportunity. Labels including Developed Markets, Emerging Markets and Frontier Markets assume a non-existent homogeneity of investment and macroeconomic risk. Labels are fine but there are too few of them to allow for genuine opportunity.

The investment world is becoming more complex. Many of the traditional guidelines which have helped investors make sense of the economic and political environment in different countries are no longer useful when allocating capital.

Investors love labels. Developed, Emerging and Frontier Markets are the most common groupings applied to economies, asset allocation and risk budgeting. Like it or not, these labels exist and are widely employed in investment decision making.