In this Fullerton Insights, we elaborate on the structural growth developments taking place in Asia, and how this is shaping the opportunity sets in the region. We further examine why Asia is uniquely positioned to ride these long-standing trends, and why an active investing approach may be best suited to ride the diverse opportunities in this space.
- Asian equities offer potentially attractive investment opportunities underpinned by long-term structural growth trends such as an emerging middle-class, technological progress, increased innovation, and rising intra-regional trade and integration which are distinct to the region.
- There are many world-class global champions unique to Asia, such as in the areas of high-end semiconductor chip manufacturing, and also emerging players in new industries like Fintech, as well as clean and renewable energy.
- As China moves up the value chain towards higher-end manufacturing, this creates newfound opportunities for other economies in the region to step up and occupy the part of the chain that China has vacated.
- Many of the interesting and disparate opportunities in Asia are under-represented in the passive equity indices of the region (which tend to be heavily slanted to the State-owned Enterprises and “old economy” names). Hence active investing is better suited to exploit the alpha opportunities in Asia.
You may also hear from our Strategist, Robert St Clair, who shares the structural reasons to be constructive on Asian equities long-term in the video below.