Philosophy
Our innovative approach is based on the assessment of investment flows to exploit the structural inefficiencies of financial markets during their first development stage.
Our analysis begins with the study of the supply and demand structure. We identify those markets where the demand is characterised by the presence of specific categories of investors and the supply of financial instruments is limited.
Frontier Markets have these characteristics and are ideal markets to implement our investment approach.
Frontier Markets
The term “Frontier Markets” is commonly used to describe the set of smaller and less accessible, but still “investable” financial markets belonging to the developing markets. These countries are at an early stage of economic and financial development compared to emerging economies and are characterised by dynamic and fast growing economies.
Frontier Markets offer significant diversification benefits thanks to their low level of integration with more developed markets and the importance of local economic factors compared to those of the global economy. Also, they have provided investors with higher dividend yield at lower valuations than emerging markets. Long-term oriented investors can benefit from the inclusion of Frontier Markets in the portfolio thanks to their low correlation, both with developed and emerging markets, and higher dividends. Investing in Frontier Markets is an effective way to diversify at an reasonable price.
To learn more about our research on Frontier Equity Markets click here.
Kallisto Partners is the advisor to Banor Capital Ltd to manage the Aristea New Frontiers Equity Fund.
KALLISTO PARTNERS PRESENTATION | FRONTIER MARKETS STRATEGY FACTSHEET | RESEARCH |
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Frontier Markets Universe

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