Asia retains its appeal, says Certitude
There is no reason to assume that Asia's rapid growth over the last few decades would not continue, according to Certitude Global Investments chief executive Craig Mowll.
The slowdown in growth in China had left many investors wondering whether Asia could continue to deliver.
However, Mowll said he was surprised by investors' focus on China not being able to deliver double-digit growth this year, with these investors disregarding the expectations that gross domestic product for the region would double by 2030.
Furthermore, the Federal Government's white paper reinforced the view that investing directly into Asia would provide significant upsides for investors.
"The three 'Rs' that underpin growth in China - railways, roads and real estate - are still growing as urbanisation continues," Mowll said. "As the white paper identifies, an increasingly wealthy and mobile middle class will continue to fuel domestic demand; Asia will soon be the world's largest producer of goods and services."
Even with the reduced growth in China this year, Mowll said Asia looked much more appealing than the United States and Europe. However, stability in those regions could only benefit Asia.
"With the globalisation of world production, emerging markets like Asia receive significant benefits when demand in developed countries increases, and they also receive the associated increased demand from their own region," he said.
"Positioning your portfolio for the next phase is critical; Asia is a high beta play on the developed markets - in times of growth, it will receive a disproportionate benefit."
Recommended for you
Global asset manager Janus Henderson could be acquired after receiving a non-binding acquisition proposal jointly from a private investment firm and venture capital firm.
Investment manager Salter Brothers has partnered with private equity firm Kilara Capital to launch an Australian sustainable investment platform focusing on decarbonisation.
Fresh off launching three active ETFs to the Australian market, Avantis Investors is already planning to expand its range with two further products next year.
Ausbil is growing its active ETF range with an ESG product in collaboration with sister company Candriam.
