Frontier Markets: Does Complexity breed Opportunity?
The Frontier Emerging Markets are less correlated, less researched and have lower levels of liquidity. The complexities of investing in these markets, the lower transparency and market inefficiencies provide a barrier to entry, but equally mean that some exceptional investment opportunities exist. Yet, for many investors, the "frontier" emerging markets remain unexplored.
In the papers below, the Savvy Content Team has identified papers which provide an introduction to the asset class, discuss the characteristics, and explore means of investing. All papers are free to access for members of Savvy Investor.
Emerging markets: accessing the frontier (Capital Group, Jun 2018)
(For compliance reasons, this paper is only accessible in certain European countries)
For many investors, frontier markets remain relatively unexplored. They offer an additional opportunity set to informed investors, but investing in these smaller, less efficient markets also involves a number of unique challenges and risks.
Five things to know about frontier market debt (NNIP, Nov 2017)
(For compliance reasons, this paper is only accessible in certain geographies)
In this paper, Marco Ruijer, Lead Portfolio Manager Frontier Market Debt at NN Investment Partners, explains why investors should consider an allocation to frontier market debt in their portfolio.
Frontier Markets: accessing the next frontier (FTSE Russell, 2015)
FTSE Russell discusses the classification of Frontier Markets, their diversification properties, country demographics and economic growth potential.
Investing in Frontier Markets Equity (Pavilion, Apr 2018)
This paper provides an overview of frontier markets. They represent a very small part of the world financial markets. And while there are many good reasons to invest - economic growth and diversification benefits - the risks are plentiful.
Investing in Frontier Markets: A Multi-Manager Solution (Lazard AM, 2017)
Lazard discusses the characteristics of the EM equities universe, the evolution of benchmarks, their growth potential and ways by which institutional investors can access this opportunity set.
Frontier Markets: 2018 Outlook (FIS Group, Jan 2018)
In 2017 the MSCI Frontier Markets Index gained 33%. In the first half of 2018, returns have been negative. What is the outlook going forward?
The difference between an Emerging and Frontier Market (Morningstar, 2018)
In this short note, Morningstar explains the difference between Emerging and Frontier markets.