Opalesque.TV interviews Marek Ondraschek, founder of Zurich-based ALNUA Investment Managers, who makes a few salient points on frontier investing.  Skip ahead to the ten minute mark, for instance, where Ondraschek reiterates the need for frontier-minded investors to diversify across regions (this ties into why some “frontier” vehicles, such as certain indices and ETFs and even funds per se, may not be suitable for most investors given their defacto correlation to one or two countries or sectors, effectively adding risk where investors are probably trying to reduce it).  To that extent, the graph shown around minute 11:30 is especially illuminating as it highlights the relative [lack of] correlation for frontier markets compared with emerging ones versus the MSCI World Index.  Coupled with the growth potential and low multiples of frontier markets, Ondraschek argues, a diversified allocation of even 10-20% (and up to 50) in a given portfolio across various frontier countries offers an ideal way for investors to maximize their risk/return profile while developed country returns seem almost destined for, at best, short term stagnation. 

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