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Laura Geritz, Wasatch Emerging Market Small Cap Fund manager, on why she believes frontier markets are better than emerging markets for investors.
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You're looking for a way to diversify your portfolio my next guest has some ideas on what could be the next frontier.
And investing joining me now on the Fox Business exclusive -- -- -- Wasatch advisors frontier emerging small countries.
Fund manager warrant this gives you again I wanna ask you about -- you're looking at some countries.
But overall you're seeing now is that -- -- markets are better than emerging markets because you're doing the opposites.
Of the United States what is your thinking kinda start to go in that direction.
-- At these markets for several years now visiting countries that I have investments in the frontier markets.
Particularly South Africa and Thailand.
And you know -- -- looking at these countries ahead of there the fastest growing countries in the world I don't think a lot of people know that that if you look from 2001 to 2010.
Nine of the top ten fastest growing countries were in frontier markets.
-- right let's talk about investing in emerging markets because you know what we think of emerging markets overall we think of the brick countries do you think that Brazil Russia India and China.
Are even emerging markets sending -- and fly com.
That that's a typical question around it really depends on the and that country that in mind my opinion on China at least is that it is definitely still in emerging.
-- -- you know you have a very big economy in consumer wealth in the in the country -- I and you still have basically close capital accounts their cell.
You know until those markets are are more open and I think you that you have to consider that an emerging economy so smaller countries and -- got back from recent trip I don't wanna hear about that as well but you say that smaller countries the Philippines Peru Thailand Indonesia.
What what is it about these countries that makes them good investment choices in your opinion.
Yes and many of them have strong domestic consumer economies.
That that's great story say DD couples them from.
What the rest of the world is doing I think if you -- tila just government debt to GDP.
It's quite low in actually all the frontier and emerging countries in general it's actually.
As of last year it's you have outside of the G-7 countries.
That the government debt to GDP as 13 lower in this region of the world -- have a lot of room for growth.
And we -- you know from exploring a small.
Smaller countries in small companies can find a company says that -- where you get high quality at a good price.
You're able to do that -- we should explain to our viewers that they can -- ending your fun but the -- yourself have the ability to buy.
Companies in these frontier markets that that operates solely in those.
Countries in -- -- in -- process for many people to -- -- -- this somebody submitted the main companies that you have because I think I'm very interesting with then.
The fond.
Your top your top five holdings you've got a company and a Sherlock a tobacco company and -- -- Nigeria you got a couple three Nigerian leaves me -- labor -- Nigeria.
And then east African -- -- a Kenya and another Nigerian names are really about sub saharan.
Continent in this house in Africa is really entry -- you want.
Yet you have seven of the ten -- fastest growing countries in the world -- and sub saharan Africa.
-- you have -- in night.
I sort of when we step on a plane in this country you know we leave Salt Lake City and it's it's 2010.
And when -- step off the plane in Nigeria act elect except back into the 1980s you know just like -- prodding its characters news recorders sort of become unstuck in time is so -- you know -- you go back to this country in this these countries had their debt crisis in the 1980s.
And today eighty infrastructure looks like it's stuck in the 1980s that's where the -- T -- -- -- you have great potential for the infrastructure to expand.
-- for these you know poor countries for these consumers to.
To you on you know enhance their wealth so I think just great.
Great opportunities in these market seeing in what's really interesting to me as if you look at the top ten.
And actually the top ten names in the portfolio -- all multi national companies well managed companies.
So you know you have good corporate governance in place and reasonable values less discovered name grocery -- phone companies tobacco the basics of tyrant a sadistic Laurie Garrett -- what's at -- you very much floors I was gonna have Alicia thank you.
