Opportunities aplenty in frontier markets

Lack of understanding about the asset class has led it to be underweight in many global portfolios

DESPITE uncertainty in financial markets, the case for frontier markets remains strong. Frontier markets' (FMs) stock markets are now trading at a premium to the more developed emerging markets (EMs), but offer a higher dividend yield and lower volatility. These will be themes to be discussed at the Morgan Stanley Investment Management (MSIM) Annual Global Ideas Conference from today until Friday in Singapore.

In 2013, 19 of the world's 20 fastest-growing economies were frontier countries. FM countries could add an estimated US$1 trillion in GDP over the next five years: this opportunity is too significant to ignore. We believe FM economies will sustain growth as they are starting from lower bases...

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