Sam Vecht, manager of the BlackRock Frontiers trust, examines the pros and cons of frontier market investing.
What are the drivers of the frontier markets’ investment case? There are seven key drivers: frontier markets offer the best growth, best demographics, a large untapped commodity endowment, the least debt, and some of the cheapest valuations and highest dividend yields. That is a pretty strong basis for us. According to Bloomberg, there is $750bn in dedicated emerging market AUM and just $3-4bn in frontier markets. It is a part of the world that a lot of people are ignoring but we strongly suggest they should be looking at it. There is nowhere else in the world where one can find such ...
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