Deciphering the Frontier Market Opportunity (Lazard)

Generally defined as being in earlier stages of economic and capital market development than their developed and emerging peers, frontier countries have younger populations, rising economic demand, and relatively low levels of penetration of basic consumer services. Listed companies in this under-researched and under-owned universe typically are fewer in number, smaller in terms of market capitalization, and less liquid than those in core emerging markets. As a result, these markets tend to be less transparent and more prone to inefficiencies, creating an attractive environment for skilled investors. In a world where the drivers of markets and asset prices have increasingly intertwined, frontier markets tend to be less correlated to developed and emerging markets, and even to each other. While investing in frontier markets can pose certain challenges, the potential reward for surmounting these hurdles can be substantial. With its extensive network of contacts and specialized knowledge of local dynamics, the Lazard Alternative Emerging Markets team is uniquely positioned to employ its multi-manager approach to extract value from this untapped and often misunderstood asset class. READ MORE