Jeremy Clarkson is best known as the outspoken presenter of Top Gear, but more recently he has surprised audiences with Clarkson’s Farm, the hit documentary following his chaotic attempts to run a 1,000-acre farm in the Cotswolds.
In season three, facing rising costs and setbacks, Clarkson tries to “farm the unfarmed” — turning woodlands, meadows and hedgerows into new income streams. The result? A mix of mishaps and mushroom meltdowns, alongside the occasional success.
Yet beneath the comedy is a serious point: neglected land can hide surprising potential if you’re willing to do the hard work.
Frontier markets are not so different. Often overlooked and under-researched, they resemble the fertile but untamed fields that emerging markets once were two decades ago.
The terrain may be rugged and the climate unpredictable, but for investors with patience, discipline and a long-term view, frontier markets offer the chance to cultivate something exceptional.
Young populations, rising education levels and urbanisation are driving productivity and higher living standards
These economies, from Georgia to Vietnam, Nigeria to Kazakhstan, are not yet part of the mainstream indices. They sit outside the MSCI Emerging and World classifications, evolving quietly beneath the radar of most institutional investors.
Yet beneath the surface lies meaningful opportunity. Valuations are compelling, with many companies trading at deep discounts to intrinsic worth – not because of poor fundamentals, but due to neglect and inefficiency.
Inefficiency is, in fact, their defining feature. Analyst coverage is sparse, liquidity is often thin and corporate disclosures can lack clarity. Passive strategies struggle in such conditions. For active managers, however, this is fertile ground.
With rigorous research, local insight and a disciplined framework, it is possible to identify high-quality businesses that are mispriced and misunderstood – companies with strong returns on capital, prudent management and resilient business models.
These markets are also supported by structural trends that would be the envy of most developed economies. Young populations, rising education levels and urbanisation are driving productivity and higher living standards. The trajectory mirrors the early stages of emerging markets, when reform and modernisation began to unlock growth.
Wealth managers plan to ‘dramatically’ increase allocation to Vietnam
Today’s frontier economies are following a similar path, offering investors a second chance to participate in a transformation akin to the rise of EM giants such as India and Brazil.
There is also a compelling diversification benefit. With low correlations to developed and emerging markets, frontier equities often move independently of global macro trends. Their economies are heterogeneous, shaped by diverse and idiosyncratic drivers.
A dedicated allocation can therefore smooth portfolio returns and reduce volatility. As capital flows begin to recognise this untapped potential, re-ratings are likely. Early investors stand to benefit, much as those who entered emerging markets before they went mainstream.
That said, investing here requires more than optimism; it demands vigilance. Political instability, currency swings and governance challenges are very real risks.
Yet many are overstated or mispriced. With careful due diligence and disciplined risk management, they can be navigated. Indeed, it is precisely these risks that create the inefficiencies active investors can exploit.
Frontier investing is not only about returns, it is about contributing to progress where it is needed most
Beyond financial returns, frontier markets present an opportunity for impact. They are home to much of the world’s underserved populations, where investment can support access to healthcare, education and financial inclusion, while promoting environmental resilience in regions most exposed to climate change.
In this sense, frontier investing is not only about returns, it is about contributing to progress where it is needed most.
The seeds are there, the soil is rich and the tools are to hand. For investors willing to embrace complexity and commit to the long haul, frontier markets offer a rare chance to cultivate the next generation of global growth.
The journey will not be easy — but, as Clarkson discovered, farming the unfarmed can yield significant results.
Louis Hutchings is portfolio manager at Nedgroup Investments
