EFG Hermes’ made significant headway into expanding coverage of high-potential frontier emerging markets (FEMs) to include on-the-ground presence in Pakistan, Bangladesh and Kenya. The Firm also has execution capabilities across 95% of frontier emerging markets, including the key markets of Bangladesh, Botswana, Ghana, Ivory Coast, Kenya, Mauritius, Morocco, Namibia, Nigeria, Pakistan, the Philippines, Sri Lanka, Tanzania, Tunisia, Vietnam and Zambia - for a total of 60 markets.
Our team currently consists of the most experienced frontier market professionals in the market, ensuring the best execution and sourcing of liquidity. In 2017, we created a frontier-trading hub in Dubai with distribution in London, Cairo and New York. In markets where we do not have our own team, we have access to a network of over 40 trusted local brokers.
Despite the challenging environment in FEMs, EFG Hermes has been able to leverage the full cycle of its experience in navigating market volatility in MENA. With a dedicated frontier platform now in place, the Firm has been able to differentiate itself by using its existing distribution platform to offer a more comprehensive and integrated set of products than its competitors. In key markets, we are also taking steps to vertically integrate our OMS into trading platforms, as well as offering balance sheet solutions to clients who are new investors to these markets.
Growing in parallel with our expanding geographic presence in FEMs, EFG Hermes Research coverage has also broadened its scope to include more than 60 stocks across the FEMs with an increasing presence of many of these companies at the Firm’s annual investor conferences in London and Dubai. The rollout of Frontier Research will leverage our existing team as well as new hires and will allow us to eventually cover c.150 frontier companies, providing unparalleled corporate access in all of the markets that we cover.