Frontier markets peripheries of investment world

By Acuity Stockbrokers research team

Frontier markets have become somewhat of a catchphrase of late. The concept of frontier markets however, has been in existence for quite some time.

First coined by the World Bank’s IFC in the early ’90s, the term encapsulates a subset of emerging markets: Frontier markets are emerging markets and they are defined thus due to the fact that although their capital markets are currently less advanced than those of their emerging market counterparts, they have significant potential to eventually become more liquid and show a similar risk/return profile as the larger, more liquid developed emerging markets.