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Frontier Markets
Definition Of Frontier Markets:
Less advanced capital markets from the developing world.
Frontier markets are countries with investable stock markets that areless established than those in the emerging markets. They are also known as "pre-emerging markets".The frontier, or pre-emerging, equity markets are pursued by investors seeking potentially high returnswho areable to accept the higher risks these type of markets would be exposed to. Some of the risks investors face in these frontier markets are political instability,poor liquidity, inadequate regulation, substandard financial reporting and large currency flucuations. In addition,many markets are overly dependent on volatile commodities.Frontier market investmentscan have a lowcorrelation to developed markets and thus can provide addtional diversification to an equity portfolio.
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