Investors who ignore Asian equities in favour of Australian and US stocks are missing the “investment opportunity of a lifetime”, says Platinum’s chief investment officer.
In a quarterly update yesterday, Platinum Investment Management chief investment officer Andrew Clifford pleaded with investors to increase their exposure to China, Japan and Korea – the three largest country weights in the manager's international fund.
"Our media, and that of the US, do not cover the development in Asia in a balanced way, and we believe most Australians have a false perspective of the opportunity," Mr Clifford said.
"Home bias is the curse of Australian investors, but our concern is that if we spend too much energy simply explaining that people need to get their money overseas to improve their portfolios, that the default market is the United States. It is not exaggerating to say that it may prove to be the same bet as Australia."
The investment thematic of the emerging presence of Asia represents a "gaping hole" in most professional portfolios (and by extension, most 'mum and dad' investors), Mr Clifford said
"In an attempt to connect and bring stories to life, we may have referred to Baidu as the 'Google of China', jd.com as 'Amazon', Alibaba as 'ebay' or Tencent as 'Facebook'. But this is wrong. This is a Western mistake," he said.
"And we believe it is exactly the mistake people are making if they do not have enough exposure to Asia in their portfolios. This is the investment opportunity of a generation and we are pleased to be making it even easier for you to access.
"Facebook might after all, simply be 'America’s WeChat'."