August 22, 2013
As emerging markets continue to fall from grace, their less high-profile frontier peers are stealing some of the spotlight.
A recent report from Bank of America Merrill Lynch showed that while some $2.1 billion exited emerging market funds from January to mid-August, frontier market funds saw inflows of $1.5 billion in the same period. More…
August 15, 2013
Desks are empty, the office silence broken only by a handful of staff chit-chatting or playing on cellphones. It’s another slow day at the headquarters of Vinacafe, a state-owned firm once the vanguard of Vietnam’s coffee export boom. More…
June 17, 2013
Reposted from The Asset
The Asean region has outperformed emerging markets over the past five years with investors’ increasing interest.
By Camille Vergara
The Asean (Association of Southeast Asian Nations) region is displaying something rare to find in the world today: economic growth. This growth is structural, driven by consumption spending due to the rapidly growing ‘middle income’ population, and by investment, particularly into infrastructure. More…
June 16, 2013
Reposted from Bloomberg
Cyclists ride past Hanoi Stock Exchange in downtown Hanoi. Vietnam’s VN Index has increased 3.9 percent since May 22, extending its gain this year to 26 percent.
By Michael Patterson & Weiyi Lim
The world’s least-developed markets are proving the most resilient to the three-week selloff that has erased $1.9 trillion of global equity value.
While the MSCI All-Country World Index of shares in advanced and emerging nations has lost 3.2 percent since May 22 amid speculation the Federal Reserve will pare monetary stimulus, the MSCI Frontier Markets Index returned 0.7 percent including dividends. Thirteen of the 15 top-performing stock gauges are in frontier countries, where the mean market value of $49 billion compares with almost $19.5 trillion in the U.S. More…
March 18, 2013
Africa’s growing consumer class is attracting the attention of investors
Reposted from The Milwaukee Journal Sentinel
By Kathleen Gallagher
To find a large number of the world’s fastest-growing economies, investors must look past Asia and South America to a less likely place: Africa.
In the United States, when a consumer buys a new car, it’s often a replacement for an older car, said Robert J. Bukowski, managing director at Alpha Investment Consulting Group in Milwaukee.
“In Africa, they’re buying their first washing machine ever, and their first car, and installing their first bathroom. That’s truly real growth,” he said. More…
February 19, 2013
Reposted from Vietnam Investment Review
Berkeley’s professor Peter Goodson studied the PE investments in Vietnam.
Haas School of Business at the US’ University of California Berkeley, has been studying the role of private equity (PE) investment in emerging markets. The specific case study is MobileWorld, a leading Vietnamese company in the mobile devices and home electronics/appliances sectors with PE backing from Mekong Capital. Berkeley’s professor Peter Goodson discussed the study with VIR. More…
February 13, 2013
Reposted from Barron’s
By Ben Levisohn
The frontier markets are the new emerging markets, and for investors comfortable with the risks, countries such as Argentina, Bangladesh and Botswana can offer some pretty impressive returns. But about those risks…
Frontier markets are surging this year. Investors, however, should think twice before plunging headlong into stocks from countries as far-flung as Argentina, Bangladesh, Botswana, Slovakia, and Sri Lanka. More…
January 28, 2013
Reposted from Seeking Alpha
By Jon Springer
Ralph Keitel works as Principal Investment Officer for the International Finance Corporation [IFC] of the World Bank Group, which concentrates on the private sector. I had the opportunity to meet Ralph at the Syneidesis Group conference in early December 2012 and listen to him present about the IFC’s case for investing in Emerging (and Frontier) markets. The World Bank’s Antoine van Agtamel is credited with coining “Emerging Markets” in the 1980s while the IFC’s Farida Khambata is credited with coining the term “Frontier Markets” (as a subset of Emerging Markets) in the early 1990s. More…
January 25, 2013
Reposted from Barron’s
By Ben Levisohn
Frontier markets have gotten off to a quick start this year. And HSBC strategists John Lomax and Wietse Nijenhuis expect the outperformance to continue.
The MSCI Frontier Markets Total Return Index has gained 5.4% this year, compared to a 2% gain for the MSCI Emerging Markets Total Return Index. That’s after trailing emerging markets from the beginning of 2009 through the end of 2012. More…
January 21, 2013
Reposted from Bloomberg News
By Michael Kohn
Mongolian officials held a briefing yesterday to defend proposed changes to a mining law that the country’s biggest business association says would deter investment.
Puntsag Tsagaan, the mineral policy adviser to President Tsakhia Elbegdorj who led the legislation’s drafting, said the proposed law would strengthen the economy, better protect the environment and ensure Mongolians benefit from the country’s mining boom, according to James Liotta, a partner at Mahoney Liotta LLC, More…