Go active in frontier markets, says Watson Wyatt

Active management is the best approach to take to frontier-market investments and can also be useful in more advanced emerging markets, according to research* published by Watson Wyatt this week. The lack of quality data available on frontier markets seems to reduce the effectiveness of quantitative investment strategies, says the consultancy. Moreover, that same lack of data means fundamentally driven managers can exploit inefficiencies and mitigate exposure to potential fraud. In …