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Investing in Frontier Markets: Opportunity, Risk and Role in an Investment Portfolio

Book Description

The only comprehensive guide to reaping big returns investing in the hottest new growth markets

This book makes a compelling case that, just as today's well-rounded portfolio includes emerging market funds, tomorrow's well-rounded portfolio will include frontier market funds. More importantly, it alerts you to the vast opportunities and potential pitfalls of investing in frontier markets while providing expert advice and guidance on how to research and invest in the most promising frontier growth markets. Widely considered to be the next emerging markets, frontier markets, such as those of certain sub-Saharan African, Eastern European, Asian, and Central and South American countries, are showing strong signs of reaching economic critical mass. If you are an investor on the lookout for authoritative, actionable information on the next big investment opportunity, this book is for you.

  • Provides sector-by-sector analyses that let you assess opportunities and risks in each frontier market

  • Provides strategies and tools for determining the most efficient methods for executing, monitoring, and exiting investments

  • Guides you through the wide diversity within frontier markets, showing how to differentiate countries on the basis of economic development and wealth distribution and other factors

  • Table of Contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Contents
    5. Acknowledgments
    6. Foreword
    7. Chapter 1: Introducing Emerging and Frontier Markets
      1. EMERGING MARKETS
      2. FRONTIER MARKETS
    8. Chapter 2: Frontier Markets by Region
      1. MEASURES USED IN THIS CHAPTER
      2. ASIA
      3. AFRICA
      4. EASTERN EUROPE
      5. LATIN AMERICA
      6. MIDDLE EAST AND NORTH AFRICA (MENA)
      7. EXOTIC FRONTIER MARKETS
    9. Chapter 3: Volatility: Not the Same as Risk
      1. LESSENING VOLATILITY IN EMERGING AND FRONTIER MARKETS
      2. CORRELATIONS TO OTHER MARKETS (AND LACK THEREOF)
      3. STRUCTURAL REASONS FOR HIGHER VOLATILITY
    10. Chapter 4: Solid Investment Information vs. Media Images
      1. THE MIDDLE EAST: NOT ALL IN CONFLICT
      2. VIETNAM: A LONG-TERM BET
      3. KENYA: A SLOW REDUCTION IN RISK
      4. KAZAKHSTAN: BORAT PAINTED THE WRONG PICTURE
      5. BANGLADESH: NOT A BASKET CASE
      6. SERBIA: A PROMISING CANDIDATE
      7. SIERRA LEONE: NO LONGER WAR TORN
      8. CONCLUSION
    11. Chapter 5: Economic Strengths of Emerging and Frontier Markets
      1. RETURNS FROM EMERGING MARKETS
      2. THE LACK OF CORRELATION BETWEEN GDP GROWTH AND EQUITY RETURNS
    12. Chapter 6: Past Emerging Market Upheavals and What They Can Teach Frontier Market Investors
      1. ARGENTINEAN DEFAULT OF 2001
      2. MEXICAN DEVALUATION OF 1995
      3. ASIAN MELTDOWN OF 1997–98
      4. RUSSIAN DEBT DEFAULT OF 1998
      5. BRAZILIAN DEVALUATION OF 1999
      6. THE PLACE OF FIXED INCOME IN THE EMERGING AND FRONTIER EQUATION
    13. Chapter 7: The Global Investment Landscape: Why Developed Markets Appear Unattractive at Present
      1. CANADA
      2. THE UNITED STATES
      3. EUROPE
    14. Chapter 8: Online Trading in Emerging and Frontier Markets and Why It's a Bad Idea
      1. THE DANGEROUS APPEAL OF GOING IT ALONE
      2. THE RISKS OF ONLINE TRADING
      3. PROFESSIONAL ADVISORS AND ONLINE TRADING
    15. Chapter 9: The Changing Role of Financial Advisors
      1. RESPONDING TO INCREASED CHALLENGES AFTER THE FINANCIAL CRISIS OF 2008–09
      2. ACCEPTING VOLATILITY
      3. COPING WITH INCREASED RELIANCE ON FINANCIAL ADVISORS
      4. CONVINCING HESITANT CLIENTS
    16. Chapter 10: Different Ways to Invest in Frontier Markets: ETFs, ADRs, Local Stocks and Closed-end Mutual Funds
      1. EXCHANGE-TRADED FUNDS
      2. REGIONAL FUNDS
      3. SECTOR FUNDS
      4. SINGLE-COUNTRY FUNDS
      5. MULTINATIONAL COMPANIES WITH LARGE EMERGING MARKET EXPOSURE
      6. FRONTIER MARKET AMERICAN DEPOSITORY RECEIPTS
      7. GLOBAL FRONTIER FUNDS
    17. Conclusion
    18. Appendix: Frontier Market Open-end Funds as of May 2013
      1. GLOBAL FRONTIER FUNDS
      2. EMERGING EUROPEAN EX-RUSSIA FUNDS
      3. AFRICAN FUNDS
      4. MIDDLE EAST AND NORTH AFRICA (MENA) FUNDS
    19. Index