In a quest for the most profitable investment opportunities, Gavin Serkin journeyed deep into the world of emerging markets. What he found - traveling alongside money managers who achieved some of the best fund returns globally in their categories for the past five or ten years -was an exotic collection of countries and markets that went beyond the concept of "emerging and into a realm most investors don't typically consider, namely frontier markets.
Think Myanmar, Ghana, Sri Lanka, Nigeria or Romania, to name a few - countries frequently associated with conflict or poverty or other seemingly impenetrable barriers to investment. These destinations, characterized by smaller market capitalization and liquidity, have nevertheless achieved impressive returns in the past several years. But how to invest in them safely is the challenge.
In this compelling travelogue, Frontier: Exploring the Top Ten Emerging Markets of Tomorrow takes the reader on a vivid journey from the poorest of slums to the glass towers of billionaires as Serkin encounters corruption, police brutality and state-sponsored violence first hand - as well as some inspirational breakthroughs. Traveling from democracy to communist to Islamic regimes, from Africa to Asia to eastern Europe, the Middle East and Latin America, he puts top money managers face-to-face with government ministers and central bankers and calls corporate executives to account - all the while putting boots on the ground to convey a reporter's and experienced traveler's sense of place and purpose.
The result is an exhilarating yet practical guide for investors in how to spot opportunities, avoid pitfalls and minimize risk in some of the world's most dangerous places - an invaluable opportunity to learn volatility assessment and valuation techniques from some of the biggest-name fund managers, including Templeton's Mark Mobius and frontier market experts from Morgan Stanley, Deutsche Asset & Wealth Management, Aberdeen Asset Management, and several more.
Their advice: don't limit yourself to spreadsheets. Do your research in person. When you land, keep your eyes open, Mark Mobius cautions. How crowded are the restaurants? How efficient is the public transportation? How modern is the airport? Along with financial considerations, these everyday things can convey a lot.
The book includes solid data readers can readily apply: the investors provide rankings of their top frontier countries, stocks and bonds on a 10-year horizon, analysis of the opportunities and risks, and triggers to watch that might signal whether to buy or sell.
Frontier is a must-read for professional money managers on the look out for promising new markets, those already active in emerging markets who seek more information, or everyday investors wanting to understand their own pension or estate choices better.
