Investors choosing to disregard Asia as an investment destination are forgoing significant money-making opportunities, according to PM Capital.
PM Capital founder and chief investment officer Paul Moore said investors who choose to ignore Asia are doing so at their own peril, with the region holding considerable opportunities.
Mr Moore explained that Asia is ideal for investors employing a top-down approach with the ability to seek out "growth businesses".
PM Capital Asia investment portfolio manager Kevin Bertoli said Asia will be the “epicentre of growth” over the coming decade as millions of consumers move into the middle class.
He pointed out that between 2009 and 2030 the Asian middle class is expected to grow by 600 per cent – up from 525 million to 3,228 million.
Mr Moore said opportunities can therefore be found in sectors that benefit from local consumption.
“Whether countries with large addressable markets with low penetration, such as China, India and Indonesia, or countries benefiting from growth in wages such as China, again, or Baby Boomer markets where consumption patterns are transitioning, such as Korea and Taiwan, there are businesses with excellent growth prospects due to their focus on local middle-class consumption,” Mr Moore said.
According to Mr Bertoli, PM Capital is focusing on companies in the areas of online classified advertising and e-commerce, gaming, consumer, infrastructure and technology.
“For those who are committed to a simple investment philosophy of buying good companies at value prices and being prepared to back your judgement and hold those business over a reasonable period, usually three to five years, Asian businesses can provide diversification from the local bourse,” Mr Bertoli said.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite unemployment falling to pre-pandemic levels, the central bank still thinks it’s too early to count its chickens on the success of ...