Frontier Markets No Riskier than Emerging Markets, According to New Research Foundation of CFA Institute Book 

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Sarah-Jane Purvis
New York
+1 (212) 705-1738
sarahjane.purvis@cfainstitute.org


New York , New York, , 29 June 2011

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 and 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 for free here (PDF).

Register here for a live webinar with the author of the book, Lawrence Speidell. This free event takes place on 21 July 2011 at 2:00 p.m. EDT.

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 100,000 members, who include the world’s 90,000 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.

Research Foundation of CFA Institute

The Research Foundation of CFA Institute is a not-for-profit organization established to promote the development and dissemination of relevant research for investment practitioners worldwide. CFA Institute is the global association for investment professionals. It administers the Chartered Financial Analyst (CFA) and Certificate in Investment Performance Measurement (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 95,000 members, who include the world’s 82,000 CFA charterholders, in 133 countries and territories, as well as 135 affiliated professional societies in 56 countries and territories. More information may be found at www.cfainstitute.org. (Bloomberg users can find CFA Institute at 497458Z).

Lawrence Speidell

Lawrence Speidell, CFA, is founding partner, CEO, and chief investment officer of Frontier Market Asset Management. Previously, he served as executive vice president at Laffer Associates and as a partner and director of global research and management at Nicholas-Applegate Capital Management, where he launched that firm’s emerging markets products and developed and enhanced its international and global quantitative disciplines. Mr. Speidell has also served as a trustee and a portfolio manager for domestic and international strategies at Batterymarch Financial Management, where he was responsible for one of the first equity funds in China and worked on the development of a fund for Russia. As senior vice president and portfolio manager at Putnam Management Company, he served as a member of that firm’s investment policy committee. Mr. Speidell is a former president of the Boston Security Analysts Society and a former director of the Investor Responsibility Research Center in Washington, DC. He also served as a submarine officer in the U.S. Navy. Mr. Speidell earned a BE in mechanical engineering from Yale University and an MBA from Harvard University.