CHICAGO, IL -- (Marketwire) -- 02/05/13 -- According to Sandy Lincoln, Chief Market Strategist for BMO Global Asset Management, who was a speaker at the Emerging Markets Investments Summit held recently at the Ritz-Carlton Palm Beach, the introduction and evolution of the frontier markets as an asset class for investors parallels in many respects what happened 25 years ago in emerging markets.
Lincoln noted that becoming familiar with economies, markets, companies and characteristics of the frontier countries can provide opportunities for several attractive features: valuations are lower than major and emerging markets, dividends are higher, correlations are low to U.S. and emerging markets and are very "under" researched.
"Frontier markets are largely undiscovered, yet they represent ten percent of the world's population, five percent of its gross domestic product, but just half a percent of the total world stock market," he explained.
"In addition, these economies grow over five percent per year and carry a favorable demographic ratio of working age to dependent age population. While this backdrop provides opportunities for stock selection, prudent policies and guidelines should be put in place regarding diversification parameters by country, sector and company. That applies to the allocation percentage as well."
The Emerging Investments Summit 2013 brought together thought leaders and solution providers to an interactive networking event, which included key trends and opportunities in global currency markets and how China's race to rekindle growth will impact the global economy.
For more information, visit http://www.bmo.com/gamus.
About BMO Global Asset Management
BMO Global Asset Management is a global investment manager with more than $110 billion in assets under management as of October 31, 2012, including discretionary and non-discretionary assets under management.
Our two multi-disciplined teams are based in Toronto and Chicago, and our network of world-class boutique managers is strategically located across the globe. They include Monegy, Inc., Pyrford International Ltd., Lloyd George Management and Taplin, Canida & Habacht, LLC. BMO Global Asset Management delivers service excellence from offices throughout North America, and in Abu Dhabi, Hong Kong, London and Mumbai. Our approach has led us to be recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of Dec. 31, 2011.
We are a part of BMO Financial Group (NYSE: BMO), a fully diversified financial services organization with $525 billion total assets and more than 47,000 employees as of October 31, 2012.
This is not intended to serve as a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. Information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. This publication is prepared for general information only. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investment involves risk. Market conditions and trends will fluctuate. The value of an investment as well as income associated with investments may rise or fall. Accordingly, investors may receive back less than originally invested. Investments cannot be made in an index. Past performance is not necessarily a guide to future performance.
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