Currently Available Conventional Investment Options in Frontier Markets

Manuel Stagars

Chapter 3 in Impact Investment Funds for Frontier Markets in Southeast Asia, 2015, pp 71-78 from Palgrave Macmillan

Abstract: Abstract Most professional investors such as institutions, high-net-worth individuals, endowments, and family offices wish to have international diversification and exposure to emerging and frontier markets in their portfolios. When countries depend on growth in different economies with different activities and consumption patterns, this leads to less than perfect correlation of their economic performance. Investing in several uncorrelated countries thus reduces risk in a portfolio. But this is not the only reason for exposure to frontier markets. Fund ma nager Mark Mobius, who oversees more than US$40 billion in emerging-market assets at Franklin Templeton Investments, believes frontier markets represent what the BRICS countries were 20 to 25 years ago.1 They offer growth prospects for the future when established markets may stagnate. Investment professionals such as Mobius have sought exposure to frontier markets for a long time. It is only recently that retail investors have access to these markets as well. Frontier markets offer attractive long-term prospects to global investors. However, most currently available retail investments lump all frontier markets together and exclude most of those in the ASEAN. In reality, frontier markets are diverse. Their cultures, people, and languages differ, their economies and available resources also vary widely. As a result,

Keywords: Mutual Fund; Private Equity; Equity Market; Venture Capital Fund; Retail Investor (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-1-137-50727-3_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137507273

DOI: 10.1057/9781137507273_4

Access Statistics for this chapter

More chapters in Palgrave Studies in Impact Finance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().