According to New Research Foundation of CFA Institute Book
Dubai, UAE - 24 October 2011: Some of the world's most rapidly expanding economies fall into what is popularly referred to as the Frontier markets. These are markets that considered being at a less advanced stage of economic and financial development than Emerging Markets. Robust and rapid growth translates into higher earnings and valuations for companies making them attractive for investors. There is a good case to be argued for the Middle East, and particularly the GCC, to be considered a separate asset class by international investors searching for non-correlated assets to the rest of the world. A perception has existed for a while that so called Frontier Markets pose a higher degree of risk to investors, than investing in Emerging Markets.
The latest publication from the Research Foundation of CFA Institute, Frontier Market Equity Investing: Finding the Winners of the Future, argues that the risk of investing in frontier markets is no greater than the risk in many markets that are considered to be emerging. According to the publication, valuations are more attractive and, therefore, opportunity for future returns is greater in frontier markets.
This latest publication from the Research Foundation can be viewed as a call to action for investors to not underestimate the potential of frontier markets. Many frontier countries have undergone a radical restructuring of their economies since the early 1990s, and, from an economic standpoint, frontier market countries are emerging rather than stagnating. Frontier markets can provide investors with a wealth of opportunities to identify stocks that have been ignored by the mainstream investment community.
"This latest Research Foundation book touches on the many investment opportunities that exist in frontier countries," says Lawrence Speidell, CFA, author of the publication. "Included in the book are reviews of the stock markets, the listed companies, the potential returns, and the diversification benefits, as well as economic and political fundamentals. I hope that this effort provides support for those who are currently investing in these markets and encouragement for those who are contemplating doing so."
"Looking ahead, these markets may represent the final frontier for global capital," states Bud Haslett, CFA, executive director of the Research Foundation and head of Risk Management & Derivatives. "As the emerging markets of today move on to become part of the developed world, the stage is set to bring along a new set of emerging candidates from the frontier markets."
The Research Foundation of CFA Institute publishes books on a variety of timely subjects each year, which emphasize the research of practical value to the investment professional and provide a unique perspective on the rapidly evolving profession of investment management. Frontier Market Equity Investing: Finding the Winners of the Future is available to download free here.
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About CFA Emirates
The CFA Emirates Society is an association of local investment professionals consisting of portfolio managers, investment advisors, educators and other financial professionals. With 426 members, CFA Emirates is the largest member society in the GCC region comprising over half of the total number of CFA charter holders in the Gulf. The society also represents a majority of the 4,773 candidates from the region who took the CFA exams in 2009. With CFA membership in the GCC anticipated to double over the next decade, a significant share of this growth is expected to be in the UAE.
About The Research Foundation of CFA Institute
The Research Foundation of CFA Institute is a 501 c.3 nonprofit organization whose mission is to provide in-depth, high quality, independent investment research to the global investment community. The Research Foundation's audience is anyone with a serious interest in investment finance. The research is oriented to the practical application of investment finance. Potential research topics cover all fields of investment though particular emphasis is given to topics that have significant practical importance to the investment community and that have not been discussed in-depth or effectively communicated to the Research Foundation's audience.
About CFA Institute
CFA Institute is the global association for investment professionals. It administers the CFA and CIPM curriculum and exam programs worldwide; publishes research; conducts professional development programs; and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 105,000 members, who include the world's 95,000 CFA charterholders, in 135 countries and territories, as well as 135 affiliated professional societies in 58 countries and territories. More information may be found at www.cfainstitute.org.
Media Contacts
For and on behalf of CFA Institute in the GCC and Middle East
Marcus Pepperell/Vadia Rai @ FTI Consulting
T: +971 (0)4 332 8832
Marcus.pepperell@fticonsulting.com / vadia.rai@fticonsulting.com
CFA Institute
Steve Wellard / Nicole Haroutunian (Europe, Middle East, Africa)
T: + 44 (20) 7531‐0755 / 0766
steve.wellard@cfainstitute.org / nicole.haroutunian@cfainstitute.org
© Press Release 2011
