why invest in asia frontier markets

In light of the current state of the global economy, Asian frontier markets are poised to experience some of the highest growth rates over the next decade. Unquestionably, emerging markets, particularly BRICS (Brazil, Russia, India, China and South Africa), have experienced unprecedented growth over the past decade and played a crucial role toward global recovery following the 2008 financial crisis. And as a sovereign debt crisis, high rates of unemployment and the fallout from natural disaster still plague the economies of the euro zone, United States and Japan respectively, investors will continue to rely on strong numbers from developing economies to achieve high returns in the foreseeable future. However, the reliability of some of the strongest emerging markets is in question. Strengthening currencies, inflation, deficits and real-estate bubbles portend slower growth rates within BRICS. Investors must look elsewhere for high-growth markets. Given these economic conditions, Asian frontier markets, a number of which performed among the best during and directly following the 2008 crises, offer the most auspicious short and long-term investment prospects.

Asian frontier markets present unique investment opportunities that are generally unavailable in other economies. In many instances, these markets exhibit high economic growth, yet are vastly overlooked, thus providing pioneer investors access to the best prospects in an undervalued market. Further, Asian frontier markets enable investors to diversify assets by investing in growing economies with low correlation to developed markets. Lastly, frontier markets afford investors the prospect of becoming early-entrants into areas that will likely transform into emerging and developed markets with long-term growth.