Frontier markets’ inefficiency raises risk levels amidst big rewards for investors

The risk-off environment that largely characterised equity markets last year could hardly be expected to favour an asset class, whose very name means ‘out there’.

However, to quote from a frontier markets report published by emerging markets boutique Ashmore, “if the idea of investing in markets that have historically produced strong long-term US dollar returns (higher than emerging markets) with lower correlation to global markets and less volatility sounds attractive”, then read on.