Mutual funds that invest in emerging markets have reportedly seen more than $2 billion in outflows so far in 2013, while funds focused on frontier markets have seen assets under management swell by more than $1.5 billion in the year to date. What explains this divergence in fortunes? The answer seems to be related to the comparative degree of integration in the global economy and appetite for foreign capital.
Today only $4 billion is invested in frontier markets, says the international economist. Yet Africa enjoys good public finances, strong growth prospects, and favorable productivity and demographic trends.
David Larrabee, CFA, rounds up the most interesting reads for equity investors from the last couple weeks.
Adeel Malik explains why he thinks regional economic integration and a strong private sector are essential to address the economic challenges, such as youth unemployment, facing the Middle East and North Africa (MENA) region.
Although certain passages of this book are specific to South Africa’s economy and markets, it has broad applicability beyond that country’s borders. A true renaissance man, author Franco Busetti renders the arcana of markets and modern portfolio theory accessible to both the novice investor and the experienced practitioner.
Nkosana Moyo shares some of the longer term political–economic developments taking place in Africa and explains why he believes the perception of risks in Africa is worse than reality.
The founder and executive chairman of the Mandela Institute for Development Studies (MINDS) believes perceived risks of investing in Africa are higher than the actual risks and that attractive investment opportunities can arise from the ‘negatives’ associated with Africa.
Michael O’Sullivan, head of portfolio strategy and thematic research at Credit Suisse, shares seven ideas to spur economic progress in the Middle East and North Africa region.
Economist David Hale told delegates at the 65th CFA Institute Annual Conference that steady increases in exports and capital spending, combined with favorable demographics, will allow emerging market… READ MORE ›
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