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Asia, the focus of investment megatrends

There are many reasons to consider investing in ASEAN, but few funds have a track record sufficient to analyze them. ASEAN will concentrate most of the planet’s middle class in the coming years, its productivity, population and economic growth will be unprecedented compared to Europe and America. Only the US will be an economic rival for this great economic zone, which will spearhead the major technological advances.

Cobas AM, the manager of the well-known investor Francisco García Paramés, points out that fortunately there are large economies that are becoming increasingly important, such as the Southeast Asia grows by 5%, with Indonesia, Philippines, Vietnam and Malaysia, for example, to drive that growth. According to the IMF, average global growth is 2.8% and in Asia 5%. Asia has a supportive monetary policy and also a situation of public doubt and a money supply without the excesses of the West.

Jesús Ruiz de las Peñas, director of business development for Spain and Portugal at Allianz Global Investors, comments that the Allianz Global Artificial Intelligence fund “has taken positions in China, but the US accounts for 75-80% of the fund’s investments.”

After opening up after the Corona crisis, China could once again become the engine of the global economy. In the long term, however, there are many reasons to invest in the country. There are long-term trends that Abrdn said warrant a look at the country. Álvaro Antón, Country Head of Abrdn for Iberia, explains that health in China is one of the issues they pay attention to.

Have growth companies come under pressure? “Growth companies have been under a lot of pressure. However, in my opinion, the market has punished them indiscriminately. As a growth investor, it’s important to differentiate between those companies that are already at the end of their journey or are facing stiffer competition and those that are simply in a cyclical slowdown. Companies that are ready to pick up momentum when the economy recovers are a promising investment opportunity,” said Martin Romo, equity manager at Capital Group.

The cities of the future are a mega trend that should be invested in today. Who hasn’t been looking for an apartment or house? We are clear about what we want in the chosen place: energy efficiency, parks and schools, accessibility, sustainability, natural spaces, technology in installations, smart buildings, regulated energy, resilience to bad weather and longevity, etc. etc. All this requires however, large and well-planned investments that are sustainable in the long term and are developing into an extremely attractive megatrend.

All over Europe, consumers are confronted with the same rising trend of inflation. Investors also have to deal with a complex macroeconomic environment, compounded by geopolitical factors. If inflation has peaked, as our main assumption suggests, there are several options in fixed income that could be of interest to investors. In our asset allocation model, we favor high yield and emerging markets. In an alternative scenario where inflation continues to rise, we favor defensive assets such as cash and government bonds. Investment grade bonds are interesting in both scenarios

Investment Strategies interviews Iván Martín, Partner and President of manager Magallanes Value Investors. We have included one of this manager’s standout strategies, the Magallanes UCITS European Equity R EUR fund, in Investment Strategies’ investment fund portfolio for premium subscribers.

Alejandro Martín, fund manager at Horos Asset Management, gives Ei Premium subscribers a master class in which he shows us how to select shares for the funds he manages.

Investment Strategies also just published issue 49 of Asset Managers, the magazine for industry professionals. How the awakening of Asia is whetting investor appetites is the focus of this month.

Learn how to invest and manage your assets, investing in the best mutual funds, the companies with the best long-term prospects, or real estate investment alternatives. Fund managers, independent analysts and private banking experts tell us where to invest based on the client’s risk profile.

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