Do the pros outweigh the cons for Asia's frontier markets?

Strong long-term growth trends underpin the investment case of Sri Lanka, Pakistan, Bangladesh and Vietnam. But the risks outweigh the benefits, writes Maria Merricks.

Ever since the success stories of the BRICs, investors have been clamouring for the next big opportunity. Similar acronyms have popped up across the world, from the CIVETS to the Next 11. The theory behind the concept is simple: invest at the beginning of a growth story to maximise returns as the market moves towards a more developed status. In practice, however, it is not so straightforward. Being spread all over the world, the differences between the markets are vast: macro components mean some are more developed or more stable than others, while opportunities in sectors vary from cont...