BMO Global Asset Management Makes the Case for Frontier Market Equities
Lloyd George Management's Dafydd Lewis at 5th Annual Make A
MILWAUKEE, WI -- (Marketwired) -- 05/10/13 -- U.S. investors, for
whom it is suitable to allocate a portion of their portfolios to
Frontier Market equities, may achieve greater return potential over
the long term than if they invest solely in developed markets,
advises Dafydd Lewis, CFA, Investment Analyst, Lloyd George
The boutique asset manager, specializing in Asian Emerging and
Frontier Markets investing, is part of BMO Global Asset Management
and a member of BMO Financial Group. Lewis delivered this important
message to delegates at the 5th Annual Make A Difference - Wisconsin
Investment Conference, held earlier this week at the Pfister Hotel in
Frontier Markets consist of countries with market-oriented economies
in the early stages of economic development, reflecting many of the
same characteristics of the original Global Emerging Markets -- such
as China and India -- some 20 years ago. After conducting nearly 300
meetings last year alone, representing companies from 47 countries,
LGM's experienced team of three dedicated Frontier specialists,
headed by Senior Portfolio Manager Thomas Vester Nielsen, CFA,
continue to be firm believers in the strategic case for investing in
According to Lewis, Frontier Markets offer strong growth prospects,
driven by favorable demographics and the increasing disposable income
of local consumers, while remaining relatively uncorrelated to both
Developed and Emerging Markets in the long term. This, Lewis said,
makes them potentially attractive from two perspectives: enhanced
returns and potentially lower risk levels through diversification in
an overall portfolio.
"Frontier Market equities have extremely attractive valuations and
offer higher dividend yields than other major markets," explained
Lewis. "Meanwhile, less analyst coverage means companies are often
'under researched.' This inefficiency creates considerable
opportunities for analysts willing to roll up their sleeves and do
their own bottom-up research which, in turn, provides institutional
investors with significant untapped investing opportunities."
As with investments of any type, potential investors should do their
due diligence by researching the risks of Frontier Market equities.
-- Political climate can range from mixed to turbulent. By diversifying
across sectors, countries and regions, investors may mitigate some of
-- Fraud is an ongoing concern but can be best managed through company
visits and by focusing on companies that are audited regularly by
internationally recognized firms.
-- Liquidity considerations also need to be taken into account, as it can
take longer to invest in and divest from Frontier Market companies.
-- Investors should seek the advice of Frontier Market experts who have
the resources available to conduct the due diligence necessary to
invest in these countries. Unlike at many other firms, LGM's Frontier
Markets team is dedicated to the strategy, which is not simply a
carve-out of the firm's GEM strategy.
BMO Financial Group is a Premier Sponsor of 5th Annual Make A
Difference - Wisconsin Investment Conference
(www.makeadifferencewisconsin.org), which brings together investment
and finance professionals and individual investors in the Midwest to
share top investment ideas and perspectives.
For more information, visit:
About Lloyd George Management
Established in 1991, Lloyd George
Management is a specialist Asian, Global Emerging and Frontier
Markets equity manager with $2.4 billion in assets under management
(as of March 31, 2013). Its team of 25 investment professionals is
based in offices in Hong Kong, London and Mumbai. Lloyd George
Management's approach is active and primarily stock driven, with a
focus on high quality sustainable growth companies with strong
capital management. It seeks investment opportunities across the
market cap spectrum. In April 2011, Lloyd George Management became a
wholly owned subsidiary within BMO Financial Group.
About BMO Global Asset Management
BMO Global Asset Management is a
global investment manager with more than $125 billion in assets under
management as of January 31, 2013, including discretionary and
non-discretionary assets under management.
Our two multi-disciplined teams are based in Toronto and
Chicago/Milwaukee, 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 London, Abu
Dhabi, Mumbai, Beijing, Shanghai and Hong Kong. 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 December 31, 2011.
We are a part of BMO Financial Group (NYSE: BMO), a fully diversified
financial services organization with $542 billion total assets and
more than 46,000 employees as of January 31, 2013.
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