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Frontier Markets

Driven by multi-generational mega trends

Frontier Markets Webinar: Navigating Geopolitical Shifts

Frontier Markets Webinar: Highlighting the resilience of Frontier Markets, attractive valuations versus EM, investment opportunities in Vietnam and the GCC, and key portfolio allocation considerations.
Despite including some of the world's most populous and fastest growing economies, Frontier Markets remain relatively under-researched, undervalued, and under-owned.
Ramzi Sidani, CFA, Head of Frontier Markets Equities

In focus

  1. Navigating Geopolitical Shifts - Finding Opportunities in Frontier Markets

  2. Frontier Markets: Benefitting from structural reforms

Why Frontier Markets?

Frontier and smaller emerging markets can offer access to companies benefiting from local consumption, financial deepening and infrastructure build-out.

  1. Compelling valuations
    Frontier Markets are trading at a meaningful discount to Emerging Markets, with the valuation gap widening, creating a potentially attractive entry point for investors.
  2. Local earnings
    Earnings momentum is often supported by domestic penetration and economic growth, rather than relying on a narrow set of global themes.
    Frontier markets offer structural growth from local demand, financial deepening and infrastructure investment, with earnings driven by local fundamentals.
  3. Diversification
    Frontier markets have historically shown low correlation and can help diversify broader equity allocations, with limited overlap versus emerging market exposures.
  4. Income
    Frontier market companies have historically paid a higher share of earnings as dividends than many emerging and developed market peers, supporting a mix of income and growth.

Why HSBC ?

A pioneer with a 18 year track record of investing in frontier markets

A pioneer with a 18 year track record of investing in frontier markets

  • HSBC Asset Management has one of the oldest and most differentiated frontier markets offerings in the industry
  • Dedicated investment team with access to the global resources and local commercial bank network of HSBC
A global investment approach

A global investment approach

  • Diversified exposure across 35 frontier markets and smaller emerging markets that exhibit "frontier" characteristics
  • A customised and exclusive reference index reflects our sensibly diversified approach to investing in frontier markets globally
The case for active management

The case for active management

  • Market inefficiencies in frontier markets give proprietary on-the-ground fundamental research increased scope to add value
  • A rigorous and disciplined investment process with a focus on fundamental bottom-up analysis with top-down calibration

Source: HSBC Asset Management as of 31 May 2026
Diversification does not ensure a profit or protect against loss.
The views expressed above were held at the time of preparation and are subject to change without notice.

Key risks

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.

  • Counterparty Risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations
  • Derivatives Risk: Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset
  • Emerging Markets Risk: Emerging markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks
  • Exchange Rate Risk: Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly
  • Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source
  • Liquidity Risk: Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors
  • Operational Risk: Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things

Further information on the potential risks can be found in the Key Information Document (KIID) and/ or the Prospectus or Offering Memorandum.

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