Asian Investors Raise the Stakes
Asian wealth managers are looking to raise equity exposure while diversifying bond investment in LatAm. The opportunities will continue to grow alongside trade.
With comparatively low interest rates at home, Asia-based
investors are keen to increase and diversify exposure to Latin
America, in line with increasing trade. Building on fixed
income focus tracking commodities, the Asian buyside is
starting to buy LatAm equities, tapping into strong domestic
growth, particularly in Brazil.
The commodity story is well known in Asia, but also in
a country like Brazil, 60% [of the economy] is domestic
consumption, says Young Hwan Kim, chief investment
officer for LatAm at Koreas Mirae Asset Management.
Mirae, which has about $1.2 billion assets under management
(AUM) in LatAm, is one of the more advanced Asian asset
mangers, having established a Brazil office in 2008.
Mexico and Brazil are in a sweet spot of sustainable
consumption growth, says John Doyle, deputy chief
investment officer at UOB Asset Management in Singapore, which
has $11.6 billion...
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