Document summary
Frontier markets (FMs) are the smaller, less developed emerging markets at an earlier economic stage than emerging markets but exhibiting many of the same growth drivers. The investment case for these markets is their ability to produce strong long-term returns as they graduate from frontier to emerging market status. FMs tend to have higher risks relative to mature markets including lower liquidity, higher volatility, weaker corporate governance standards and less developed institutional frameworks. Focus is on the MSCI Frontier Markets index and how markets have performed recently and valuations evolved. The expected performance of FMs in 2011 is then explored