Asserts the Zambian-born moderate-conservative economist: "The search for superior, uncorrelated risk-adjusted returns
continues, and savvy investors such as endowments and family foundations
are turning their attention to the frontier markets. Such markets
exclude the BRICs, many of which posted sizable equity returns of over
30% last year, including Nigeria, Estonia, Pakistan, and Kenya. The MSCI
Africa sub index posted one-year returns of over 60%. By comparison,
the BRICs (Brazil, Russia, India and China) grew slower and sluggish — for
example, around 4% on the Shanghai index and -2% on Brazil’s Bovespa."
Dr. Moyo continues her commentary: "A
set of well-known factors bind these seemingly random countries. Solid
debt and deficit dynamics; attractive labor trends, favorable
demographics and upward mobility; and important productivity gains all
make for a compelling economic growth story. However, there are two
areas where perceptions of frontier economies are really changing: risk
and liquidity."
Dambisa Moyo: "Forget The BRICs. Zambia, Estonia & Pakistan Are The Place For Alpha Investors"
