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Benedicte Gravrand, Opalesque Geneva.
"The BRIC thesis has been hashed to death," said Nikhil Jhangiani, chief investment officer at Geneva-based fund manager Peak Partners during a presentation on investing in emerging markets yesterday. "Non-BRIC emerging markets (EMs) are the only growth story in town." In fact, his basic hypothesis is that EMs are likely to stay that way for many years to come.
According to Peak Partners, the developed world is struggling with the crisis and can no longer be the driving force behind the global economy in the 21st century; leaving room for EMs to be the main growth engines of the world.
The Next Eleven (or N-11) are eleven countries – Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam – identified by Goldman Sachs as having a high potential of becoming the world’s largest economies this century, along with BRIC (Brazil, Russia, India, China). However, they remain highly volatile. So portfolio managers need to be able to anticipate changes and manage them properly.
Advanced economies, it is well known, are debt-ridden and are struggling to pay back. And current budget reductions are likely to reduce their growth too.
"You cannot be the driver of anything if you are a debtor," noted Nikhil Jhangiani. "Investors need to focus on true growth and tangible assets." That is EMs, which debt ratios and fiscal deficits are less than half that of develope...................... To view our full article Click here
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