Frontier Markets – A Unique Asset Class
Given the specific features of Frontier Markets in term of risk,return and correlation compared to Developed andEmerging Markets, these group of countries have to beconsidered as a new asset class. Frontier Markets’investment role has enhanced in recent years as theyrepresent a unique opportunity of investing within a globalequity portfolio. Investing in this new asset class is a newway to diversify.
As the new uncorrelated source of equity growth premium, Frontier Markets request a specific investment approachwhich has to be very different from those adopted whenlooking at Emerging and Developed Markets. Anyinvestment strategy focused on Frontier Markets has to bedesigned to fit the specific characteristics of the earlystage financial markets.
