Are global multinationals' local subsidiaries the best way to access frontier markets?

Provide "genuine diversification" for investors

A few years ago, frontier markets were in vogue. They were the hot new accessory in every savvy investor's portfolio, writes Salman Siddiqui, senior portfolio manager at Nomura Asset Management.

New funds were being launched promising to go deeper into unchartered waters looking for the next top undiscovered stock, while investors were falling over each other at conferences in more and more exotic locations. Meanwhile, the frontier markets themselves were consistent outperformers. Life in the frontier fast lane was good. Fast forward to late 2014 and the plunge in commodity prices brought with it some dark clouds. In oil-dependent Nigeria, the party came to an abrupt end. Today, the country grinds slowly and painfully towards inevitable currency devaluation. Can Africa's e...