Investment Solutions Forum 2019 SG - Exclusive Insights - Dominic Bokor-Ingram - 2

Jump to section:

1. How are frontier markets being impacted by global macro trends?

Video transcript

1. How are frontier markets being impacted by global macro trends?

Frontier markets' economies tend to be very isolated from global economies and global macro factors, due to a number of different standout characteristics. First of all, they tend to have very low levels of US dollar debt, which mitigates against rising interest rates in the US and a strong dollar. Secondly, most of the markets in which we're investing, particularly in the Middle East and a lot of the Asian markets in which we invest have either balanced or large current account surpluses, which again take a lot of the risk out of this current strong dollar environment. In addition, the biggest beneficiaries of the recent trade wars, particularly in Asia, but in some cases in Latin America, have been the frontier markets that are benefiting from foreign direct investment flowing away from markets like China, towards markets like Vietnam and Bangladesh, and driving the next wave of growth.