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From Kirsten Bischoff, Opalesque New York:

EPFR Global recently reported that 2009 saw record annual inflows into emerging market stock and bond funds. Emerging markets are drawing investors that expect growth to continue as established economies focus on developing nations and their untapped resources and consumer needs.

However, the rapidly evolving global nature of our economy is rapidly extending and firms such as Chicago-based Frontaura Capital are looking even further, past emerging markets to frontier markets, a space they feel represents even larger opportunities for growth.

Managing directors Nick Padgett and Stephen Mack launched Frontaura Capital in November 2007 focusing on those countries with stock exchanges that are either not represented on the MSCI All-Country World Index, or that represent less than 0.10% of that index. The fund is currently invested in 18 countries spanning from Qatar (which as both a frontier market and the wealthiest per capita nation on earth might be the best example of the resource driven growth potential of these countries) to Sri Lanka and Iraq.

“Our view is that frontier markets are where emerging markets were 20 years ago and we wanted to be in early for that opportunity,” Padgett told Opalesque. Both Padgett and Mack have logged considerable mileage since the launch of the fund, touring the frontier countries that they have invested in.

“There is a ......................

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