Building BRICs to emerging markets

A new tool launched by boutique investment publishing house Brillient! in its PortfolioConstruction Forum offering, aims to equip researchers and investment committee members from dealer groups, platforms, super funds and research houses with the knowledge and insight required to understand emerging global economies.

The 10th tool in its suite of products — BRIC Study Tours — will focus on the burgeoning BRIC economies comprising of Brazil, Russia, India and China.

“My view is that each of these four countries will have immeasurable bearing on the global market in the coming years,” PortfolioConstruction Forum publisher Graham Rich said.

“These study tours will allow researchers to better understand these markets, enabling them to make more informed decisions on whether or not to get involved in them.”

Rich said the BRIC study tours will begin next year with a trip to China (March 26 — April 1). This will be followed in 2007 with a study tour to India, Russia in 2008, and Brazil in 2009.

“PortfolioConstruction Forum will focus on China for the first 12 months, then India the following year, then Russia and then Brazil. We’re starting with China due to its proximity to Australia and the current level of interest surrounding it,” Rich said.

Industry figures show the four BRIC markets currently represent less than 10 per cent of combined G6/BRIC gross domestic product. However, by 2020 this figure is predicted to rise to 25 per cent, and then to 60 per cent by 2050.

“There are still many issues to be overcome in these markets, but with the progress that countries like China have made, we feel very bullish about these emerging markets,” Schroders head of Australian multi-asset funds Simon Doyle said.

The BRIC study tours are presented by PortfolioConstruction Forum and Think Global Consulting, in partnership with Aberdeen, Skandia, Schroders and Mercer.