Apr 7, 2020
Hedi Ben Mlouka joins the podcast to discuss his views of
frontier markets in light of the coronavirus crisis.
Ben Mlouka has been investing in frontier markets for more than
a decade as CIO and CEO of Dubai-based FIM Partners. He sees the
asset class in general as being at greater risk of being impacted
by fallout from the COVID-19 epidemic. The political risks are
(Spotify users can skip to the section by clicking on the
- Is this a good time to be investing in frontier markets?
- The first part of the equation: Frontier markets are less
prepared for the coronavirus than developed markets (7:05)
- The impact will be larger from a healthcare perspective while
the policy response can be expected to be weaker, especially in
fragile economies (9:56)
- The crisis will expose the "downside of globalization,"
precluding a "V-shaped" recovery (11:30)
- Where are the opportunities? Oil importers like Pakistan and
Egypt can benefit (15:26)
- Speaking oil, forget about the demand shock for now. Oil prices
should recover to $50 or $60 per barrel (18:57)
- Beyond the macro picture, industries with access to capital are
preferred. Avoid travel, hospitality, banks. (21:07)
- Healthcare, education, retail, and consumer discretionary
companies should recover over the long term (23:56)
- Political risk is a major concern for many countries in
frontier markets. Who's most vulnerable? (31:09)
More information on the guest:
Not intended as investment advice.