Sun, Aug 2, 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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner