The article published on 26 August 2024 mentions that one of the sectors gaining increased interest is frontier market debt, representing a group of lesser-known, frequently misunderstood developing economies that provide opportunities for diversification and potentially high yields.

The article features several quotes from Jetro Siekkinen, Partner at LGT Capital Partners. As a portfolio manager, he monitors more than 170 frontier markets and examines their potential strengths and weaknesses.

“We put more emphasis on the direction of travel, rather than the current level of a country. We want to invest in places where we see positive, sustainable progress, not just the highest yields,” Jetro says. One thing he particularly notices about the country universe he covers is that all markets are primarily driven by idiosyncratic factors: they are largely exposed to country-specific factors, rather than global sentiment and flows. “They have very low correlation against each other,” Jetro adds. “If we look at countries like Uzbekistan or Uruguay or Mongolia, they hardly have anything to do with each other.”

Read the full article here.