Risk can be analyzed in a top-down fashion says Seth Mantell at Ephraim Global Emerging Markets Conference.
According to Seth Mantell, Chief Investment Officer at Ephraim Global, who spoke recently at the Ephraim Global Emerging Markets Conference held at the company’s corporate headquarters in Harumi Island Triton Square in Tokyo, the establishment and development of the frontier markets as a particular asset class or category for investors reflects in many ways what occurred twenty five years ago in emerging markets.
Mr. Mantell indicated that familiarizing oneself with economies, markets, businesses and the general features of frontier states can help investors identify opportunities with certain profitable aspects: value assessments are reduced compared to principal and emerging markets, dividends are increased, correlations to principal and emerging markets are low and insufficiently researched.
“Frontier markets are for the most part an untapped source of investment opportunities even though they represent 11% of the globe’s populace, 6% of its GDP but only 1% of the total international stock markets” commented Mr. Mantell. “It is also important to note that frontier market economies develop at a rate of 5% per year and have the advantage of a balanced demographic ratio of working age individuals to retirees. Though this background offers opportunities for stock selection there’s a visible necessity for cautious strategies and guidelines in regards to diversification criteria by state, economic segment and enterprise, which is also suitable in terms of allocation percentage”.
The Ephraim Global 2015 Emerging Markets Conference brought together leading strategists, financial advisers and solution providers to a dynamic networking event, which included discussions regarding important tendencies and opportunities for diversification the in international markets and how China’s attempts to revitalize its growth will impact the regional and worldwide economy.
About Ephraim Global
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
Harumi Island Triton Square Office Tower, 1-8-12 Tower Z, Harumi, Chuo-Ku, Tokyo, Japan.