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."
AUTHOR
Staff Writer
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
