Investment Case
Frontier Markets have lower market capitalization and liquidity than the more developed, "traditional" emerging markets. The frontier equity markets are typically pursued by investors seeking high, long term returns and low correlations with other markets.
The implication of a country being labeled as Frontier is that, over time, the market will become more liquid and exhibit similar risk and return characteristics as the larger, more liquid developed emerging markets.
Emerging market / frontier investors say investing in frontier assets would actually diversify and reduce risk, which contradicts the general notion that risk would be added by including those markets.
Read more about this topic: Frontier Markets
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