QuotedData has published a new note on a company in the global emerging markets sector.
Aberdeen Frontier Markets Investment Company (AFMC) offers investors a diversified exposure to the superior growth prospects offered by frontier markets (stock markets that aren’t classified as developed or emerging). Its managers believe that weak commodity and energy prices, as well as concerns over Chinese growth, have weighed heavily on this area and the vast majority of investors are now underweight. A valuation gap has opened up, versus developed markets, but AFMC’s managers see the potential for a strong recovery in frontier markets should a rebound in earnings growth start to emerge. In the meantime, they expect that investors will be able to benefit from an attractive yield. AFMC’s board agrees that income is an increasing part of the rationale for investing in frontier markets and is introducing a semi-annual dividend.
Long-term capital growth from frontier markets
AFMC aims to generate long-term capital growth by investing predominantly in a diversified portfolio of funds and other investment products which derive their value from frontier markets. Investee funds may include closed-and open-ended funds, exchange traded funds, structured products and some direct equities.
Aberdeen Frontier Markets – Long term growth opportunity? : AFMC