Aberdeen believes that the attractive fundamentals of the Asia Pacific region are too important to ignore.
Markets around the world struggle in a frequently volatile environment, developed nations grapple with their crippling debt, and the Eurozone and the U.S. face high unemployment and low projected growth rates.
Asia is expected to expand by 5.8% in 2013 versus 2.1% in the U.S. and 0.2% in Europe.1 When one compares Asia's strong growth record to that of the Eurozone, which has entered into a recession with growth at -0.4%, or the U.S. with growth at 2.2%2, we believe the attraction for investors is clear.
While Asian asset markets should not be considered a "safe haven" during periods of global market volatility and are not entirely immune from the economic woes that are troubling the West, potential opportunities exist for long-term investors who are underweight to the Asia Pacific region.
We believe the long-term upside remains attractive, but investors should understand the levels of risk that investing in the region can involve. Asia's stock markets are still relatively small, can be liquidity-driven and hence volatile, which means the rewards of Asia Pacific investments can carry potentially above-average risks.
Discover more about the merits of investing in Asia. At Aberdeen, we believe Asia Pacific investments, via equity and fixed income strategies alike, offer potential opportunities for investors to diversify away from the economic woes confronting the developed world. Contact us for more information.
Footnotes
Emerging Asia comprises: China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam.
1 IMF, World Economic Outlook Database, October 2012.
2 International Monetary Fund, July 2012.
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Investing involves risk, including possible loss of principal. Fixed income securities are subject to certain risks including, but not limited to interest rate, prepayment, extension and credit risks. Foreign securities are more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards, and political and economic risks. These risks are enhanced in emerging market countries. Concentrating investments in the Asia-Pacific region subjects the portfolio to more volatility and greater risk of loss than geographically diverse investments.
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