Sat, Mar 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Mirae Asset: Investors attracted to Asian consumer growth should look beyond discretionary and staples sectors

Monday, October 25, 2010
Opalesque Industry Update - Mirae Asset Global Investments (“Mirae Asset”), one of Asia’s leading asset-management companies, believes that investors looking to capitalise on the rise of the Asian consumer should look beyond obvious sectors, such as consumer staples and discretionary, to areas such as the internet, healthcare, new financial services and education.

Sungho Im, Head of the Global Portfolio Management Team, explains: “Much attention has recently been focused on the emergence of a new breed of consumer in Asia. The OECD forecasts that more than half the world’s ‘middle classes’ could be in Asia by 2020, and Asian consumers could account for over 40 per cent of global middle class consumption.

“Asia is transforming itself from a manufacturer of cheap products for consumers in developed countries into a leading consumer force. The world is looking to Asia to pick up the slack left by consumers in Europe and the US, who are experiencing a period of austerity following the financial crisis.”

Mirae Asset believes the rise of Asian consumerism is a major socio-economic trend that will bring enormous change to the regional economy as a whole and investors should consider the impact this will have on other non-consumer sectors.

Sungho Im continues: “The Chinese internet industry now has the most users in the world and is growing rapidly as increasing numbers of people are able to afford PCs or laptops and therefore, internet access. The online gaming and advertising industries are also growing quickly and offer attractive investment opportunities. In India, the infrastructure industry should benefit from the purchasing power growth of consumers. With the power deficit in India growing worse as more Indians can afford to buy electric appliances, increased government infrastructure spending should benefit relevant industries.”

Mirae Asset also sees education as a promising investment target. As Asian economies continue to grow, more parents will be able to spend larger sums of money on education. There is a general perception that higher education is a precursor to obtaining professional jobs and higher incomes, therefore the conclusion can be drawn that more parents will send their young children to private education institutes to ensure their children gain university entrance.

Sungho Im adds: “Investors need to bear in mind the important variations that exist between countries in Asia. For example, the internet penetration rate in India is still in the low single digits whereas in Korea it is 95%. Some Chinese manufacturers are relocating their production bases to other countries because of rising cost pressures, and Indonesia is a key beneficiary of increased foreign direct investment inflows.”

Mirae Asset emphasises that while everyone agrees on continued economic growth in Asia, it is important to appreciate the differences between countries to find the best investment returns. The firm strongly believes the rise of the new Asian consumer will be a key focus for global investors.

(press release)

About Mirae Asset Global Investments
Since 1997, Mirae Asset Global Investments has become one of Asia's largest independent asset managers and the world’s largest active investor in Emerging Market equities. Globally, the firm recorded in excess of USD58 billion of assets under management as of December 2009.

Headquartered in Korea, the Mirae Asset Global Investments Group has investment management operations in Seoul, Hong Kong, Bombay, Vietnam, Shanghai, New York and Sao Paulo. The Mirae Asset team includes 170 investment professionals dedicated to asset management in Asia and other emerging markets.

Mirae Asset Global Investments (UK) is a wholly-owned subsidiary of the Mirae Asset Financial Group, and is authorised and regulated by the Financial Services Authority.

Further information can be found at www.miraeasset.co.uk

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner