Stock markets in frontier markets could outperform their emerging market neighbours with predicted growth of 11% per annum over the next 10 years, according to research by Swiss & Global Asset Management.

Frontier markets, which include countries such as Bangladesh, Pakistan, Vietnam, Oman and Nigeria, where gross domestic product per capita is low and market access difficult, enjoyed record inflows last year, according to data provider EPFR Global. Investors put $2.6bn into dedicated frontier funds, more than twice the inflows into equity funds in Brazil, Russia, India and China in 2010. In 2009, Bric funds took in more than $5bn while frontier funds posted slight outflows.