How Frontier Markets Can Offer Value for SA Investors

Summary

Frontier markets are smaller, less developed countries that often get ignored by big investors. These markets can offer good opportunities because their economies are growing quickly and stocks may be cheaper compared to bigger, established markets. However, they also come with more risks, like political instability and less reliable financial information. Rory Kutisker-Jacobson, a portfolio manager at Allan Gray, explains that investors need to be patient and selective when looking at these markets. By carefully choosing the right investments, there could be long-term benefits as these economies develop. For South Africans, understanding frontier markets offers a way to diversify their investments and possibly find value outside of the usual options. But it’s important to balance the chance for high returns with the risks involved.