Wednesday, 12 January 2011

FT Tilt - Frontier markets: a manifesto for a new world order(Registration)

Emerging markets are dead, all hail the new frontier. That’s the new marketing pitch from Swiss & Global Asset Management.

On Tuesday, the Swiss money manager released a bullish report (see attached document, left hand column) projecting frontier stock markets will outperform their emerging market counterparts in the coming years, delivering 11% annual growth over the next decade.

Strong economic growth, positive demographics, strengthening domestic consumption, high commodity prices and expanding financial systems - from its low base - are key. For yield-hungry investors scrambling for returns in an increasingly crowded emerging market space, the allure of frontier markets is obvious. The report argues:

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