Douglas Clayton is chief executive of Leopard Capital, a private equity investor in frontier markets.
Frontier markets are considered to be less developed and stable markets than the emerging markets.
He says frontier markets now, unusually, trade for lower multiples to earnings than their emerging-market peers.
The BRIC countries are becoming large investors and trading partners of the so-called frontier markets, especially in Africa.
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The gap between the MSCI Frontier Markets index and the MSCI Emerging Markets index remains near historic lows.
At least with frontier markets, there are good reasons to think you are getting paid to take the risk.
Since Jan. 1, the MSCI Frontier Markets index has risen 7%, while the MSCI Emerging Markets index has fallen 1%.
The frontier markets are particularly interesting because of their fast growth, says Mobius, even faster than many other emerging markets.
In frontier markets throughout Africa, CEO confidence in company growth slipped to 44 percent, from an impressive 57 percent last year.
The Harding Loevner Frontier Emerging Markets Portfolio invests in smaller emerging markets and frontier markets, and is widely diversified across regions and countries.
During the last 10 years, of the 10 fastest growing economies in the world, nine were frontier markets and one was another emerging market, China.
As investors are generally getting increasingly comfortable with investing in the emerging markets, they might want to take a look at some of the frontier markets.
When social entrepreneurs deliver power, water, and other goods to poor communities, they create foundations for economic growth, opening frontier markets to other forms of investment.
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Still, frontier markets have lagged behind emerging markets since 2008.
In emerged and frontier markets on the other hand it was the first to build a great ecosystem and it has combined a philanthropic and pro-development investment ethic exceptionally well.
According to the ETF Finder at ETF Channel, EOC makes up 5.81% of the Guggenheim Frontier Markets ETF ( AMEX: FRN) which is trading up by about 0.4% on the day Friday.
"Just a few years ago, these countries were untouchables, " says Simon Mandel, who follows Central and Eastern European countries for Auerbach Grayson, a New York broker-dealer that specializes in emerging and frontier markets.
According to the ETF Finder at ETF Channel, ENI makes up 5.34% of the Guggenheim Frontier Markets ETF ( AMEX: FRN )which is trading lower by about 0.7% on the day Thursday.
According to the ETF Finder at ETF Channel, ENI makes up 5.34% of the Guggenheim Frontier Markets ETF ( AMEX: FRN )which is trading higher by about 0.1% on the day Tuesday.
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According to the ETF Finder at ETF Channel, ENI makes up 5.34% of the Guggenheim Frontier Markets ETF ( AMEX: FRN) which is trading lower by about 1.5% on the day Tuesday.
According to the ETF Finder at ETF Channel, EOC makes up 5.81% of the Guggenheim Frontier Markets ETF ( AMEX: FRN )which is trading up by about 0.3% on the day Friday.
According to the ETF Finder at ETF Channel, EOC makes up 5.81% of the Guggenheim Frontier Markets ETF ( AMEX: FRN )which is trading up by about 0.1% on the day Monday.
Strategists say that leaves frontier markets comparatively inexpensive.
In a study of the impact of war on stock markets in frontier countries, Caravan Capital Management, a fund that invests in frontier markets for wealthy individuals, found that many conflict countries experience intense post-war rallies.
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In contrast and as an example of the innovation impulse elsewhere, in India GE has created a mobile electrocardiogram, which is routinely praised as a case study in how to use frontier markets to innovate.
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Western banks, energy firms and consumer-products companies are agitating to get back into the country, one of the world's last frontier markets, with of 60 million people, but they can't fully do so until rules are eased.
Going frontier means adding lesser correlated assets to your portfolio, as the MSCI Frontier Markets Index shows 0.64 correlation to the developed markets and only 0.59 to the larger emerging markets in the EEM, according to Jackass Investing.
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It gained 22% in the year ended Jan. 31, compared with 20% for the frontier-markets index.
First, leading multinationals are aggressively investing for leadership across large and frontier emerging markets as sales flatten in their traditional Western strongholds.
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