Monday, 15 May 2023

A TRANSFORMING ASIA OFFERS GLOBAL INVESTORS DIVERSIFIED AND DIFFERENTIATED ALPHA OPPORTUNITIES: NEW EASTSPRING INVESTMENTS AND PWC SINGAPORE WHITEPAPER



•  New whitepaper assesses the impact of key transformations across Asian markets and their implications for businesses and investors
• Global survey of senior business leaders supports the proposition that Asia remains an attractive region for investors
• India, China and Indonesia were highlighted by senior decision-makers as markets offering the greatest growth potential
• Asia is no longer just a traditional manufacturing hub - technological development, knowledge transfer and accelerating innovation are reshaping the region as a critical exporter of higher-end, hi-tech goods and services
• Tailored, nuanced approaches are required for investors to capitalise on Asia’s differentiated alpha opportunities
 

SINGAPORE, May 15 (Bernama) -- Demographic, technological and economic transformations, driven by a combination of supply chain rebalancing, substantial consumer growth and innovation, are creating new opportunities for investors across both traditional and new economy sectors in Asia, according to a new whitepaper from Eastspring Investments (“Eastspring”) and PwC Singapore.
 
In the whitepaper titled “Asia 2.0: Investing in an era of new opportunities”, Eastspring assess the current changes taking place within Asian markets, why Asia’s next transformation will be different from the last - and the new opportunities it will bring investors. The whitepaper highlights high opportunity sectors in nine key Asian markets to showcase the diverse opportunities in the region.
 
The whitepaper is based on a global survey of 100 C-suite business leaders of international corporations across multiple industries, interviews with senior executives from some of Asia’s leading companies, and in-depth research.
 
Key findings from the whitepaper survey of global business leaders include:
 
•67% considered India to hold the most potential as businesses seek to expand and develop within Asia, closely followed by China (57%) and Indonesia (38%).
 
• 77% are looking to Asia for expansion or transformation opportunities due to the region’s expanding and evolving consumer base. 69% indicated optimism towards sustained economic growth in Asia in the future.
 
• 62% cite improving physical and digital infrastructure, along with advancements in workforce skillsets (56%) and supportive government policies and incentives (50%) as key enablers in supporting Asia’s future transformation and their longer-term business ambitions in Asia.
 
• Business leaders recognise an increased focus on sustainability, with 57% indicating that their choice of suppliers will be determined by ESG considerations.
 
• Tailored investment approaches are needed because of the nuances across Asia’s diverse markets, with individual markets offering their own unique opportunities.
 
The whitepaper’s findings support the notion of the region’s increasingly important role within the global economy. By 2030, Asia is expected to account for over 40% of the world’s GDP and 42% of global exports .
 
Sidharta Sircar, Partner, International Growth Practice, PwC Singapore, said:
 
“Global business leaders are evidently cognisant about the growth and transformation taking place within Asia, and the untapped potential that remains. In our research with Eastspring, those surveyed provided clear indication that they are actively seeking to access opportunities. Innovation has emerged in both traditional sectors, such as manufacturing, healthcare and financials, and new economy sectors, such as the digital economy, renewable energy and EVs. Evolutions in underlying infrastructure, skillsets and government support will also have an important role to play.”
 
Bill Maldonado, Chief Investment Officer and Interim Chief Executive Officer at Eastspring Investments, added:
 
“We have long believed that Asia offers a highly attractive proposition for both businesses and investors. Yet its economic prominence often contrasts with the more modest role it plays in global investor portfolios. With each Asian market at different stages of growth and given how diverse and complex local markets can be, it is crucial investors understand the nuances to unlock Asia’s differentiated alpha opportunities.
 
Our whitepaper aims to provide useful information for global investors seeking greater diversification and rebalancing strategies for their investments and encourage greater awareness and interest for investing in Asia. It also highlights the opportunities for Asian investors beyond their home markets.”
 
More information and the full “Asia 2.0: Investing in an era of new opportunities” whitepaper can be found at https://www.eastspring.com/insights/asia-whitepaper
 
About Eastspring Investments: 
Eastspring Investments, part of Prudential plc, is a leading Asia-based asset manager that manages over USD 221 billion (as of 31 December 2022) of assets on behalf of institutional and retail clients. Operating since 1994, Eastspring Investments has one of the widest footprints among asset management companies across Asia*.  We provide investment solutions across a broad range of strategies including equities, fixed income, multi asset, quantitative and alternatives and are committed to delivering high quality investment outcomes for our clients over the long term.
 
We incorporate ESG factors into our investment process and are aligned with a number of global sustainability initiatives including the United Nations-supported Principles for Responsible Investments (PRI) and the Asia Investor Group on Climate Change (AIGCC). We collaborate alongside industry peers to harness a collective investor voice to influence and drive change with investee companies.
  
About Eastspring Investments Berhad:
 
Established in 2000 and based in Kuala Lumpur, Eastspring Investments Berhad is one of the Malaysia’s leading asset management companies in Malaysia in serving both institutional and retail clients, with RM55.6 billion in assets under management in the country (as at 31 December 2022). Eastspring Investments Berhad. It manages unit trust funds, wholesale funds as well as private mandates.
 
For more information on Eastspring Investments, please visit: www.eastspring.com
 
*Eastspring Investments companies (excluding joint venture companies) are ultimately wholly owned/indirect subsidiaries of Prudential plc of the United Kingdom. Eastspring Investments companies (including joint venture companies) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company Limited, a subsidiary of M&G plc (a company incorporated in the United Kingdom).
 
 
SOURCE : Eastspring Investments Berhad

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