Provide One Example Of An Operating Financing And Investing Activity Introduction to Investment Trusts – Emerging Markets

You are searching about Provide One Example Of An Operating Financing And Investing Activity, today we will share with you article about Provide One Example Of An Operating Financing And Investing Activity was compiled and edited by our team from many sources on the internet. Hope this article on the topic Provide One Example Of An Operating Financing And Investing Activity is useful to you.

Introduction to Investment Trusts – Emerging Markets

Introduction to Investment Trusts – An Emerging Market Comparison

The investment trust landscape in emerging markets around the world is an attractive and diverse environment, offering long-term investors the opportunity to see significant returns. For example, reports from a range of investment trust managers show that the average global emerging markets investment trust has returned 461 per cent over the past decade (The Telegraph Online, 16/09/2011).

It has been argued that emerging markets are currently in a much better position than their Western counterparts due to their generally higher financial reserves and lower levels of debt, as well as stronger macroeconomic trends.

Investing in emerging markets is potentially profitable through investment trust. However, it is important to remember that it is emerging market funds that are held only as part of a diversified investment portfolio that have seen the safest returns in recent times, mainly for long-term investors.

Here we take an introductory look at the investment trust landscape within a selection of key emerging markets.

South America:

Countries within South America have seen the biggest changes of all emerging markets and investment trust activity has increased recently.

For example, the stock exchange merger between Colombia, Chile, and Peru, which made it the second largest equity exchange in the region, has drastically changed the landscape within the region, especially as Mexico and other countries have also expressed their desire to join.

Major cities in the region are also showing signs of becoming major international destinations for business and tourism due to massive improvements in local infrastructure, a trend that has potential for economic gains for foreign investors. For example, Colombia’s real gross domestic product (GDP) grew by 6.0% annually in 2011, while inflation ended 2011 at less than 4%, easing a generally optimistic economic outlook.

Some sectors within the region also show a forward-thinking mindset with a focus on efficiency in energy production and consumption which should create a healthy investment climate in the future with significant growth in production volumes.

South-East Asia

South East Asia has experienced major economic changes over the past decade. Offering the potential for real growth in many developing markets, this dynamic region has become an attractive modern investment area.

The economies of Southeast Asia are growing faster than those in more developed countries such as North America and Japan, as well as nations within Western Europe. They have also outperformed many of their emerging market counterparts as reflected in the continued growth in investment trust activity across the region.

This growth has been largely fueled by the fact that Asian economies are rapidly increasing their domestic consumption of a wide range of goods. Rising demand for core commodities from Asian industry has further boosted and rising demand is expected to sustain growth in industrial production, providing further impetus to investment trust activity.

For example, Indonesia’s stock market was one of the best performing markets in 2011 – the MSCI Indonesia Index was up 6% in US dollar terms in 2011 – and this is predicted to continue for 2012-2013.

This strong performance has been matched by Malaysia’s growth as a very attractive investment destination, particularly for consumer and commodity stocks. The country’s long-term outlook appears to be both resilient and positive as a result of strong fiscal policy, stable macroeconomic fundamentals and continued demand for natural resources.

Thailand also appears to be healthy and the economic recovery is in good shape. Key to this economic growth has been the maintenance of the country’s substantial agricultural resources, exploitation of offshore gas reserves, as well as well-established and highly successful manufacturing and tourism industries.

Overall, South East Asia, like South America, will benefit from continued growth in the quality of infrastructure within each nation, and this growth will feed into each country within the region. This should mean that investing in a well-managed and regionally experienced trust will yield strong returns.

China

China is the world’s most populous country and one of the fastest growing major economies.

In the modern era, consumerism has seen a huge increase with the increase in per capita income. This huge demand for consumer goods and services ensures that the income growth outlook for managed investments is extremely positive. China’s foreign reserves are also among the largest in the world, making it less vulnerable to external financial shocks. Combined with the fact that inflationary pressures in China are easing and the industrial sector is still recording strong growth, international investors are continuing to be attracted to China’s growing economy.

Commodity stocks are the obvious attraction as global demand for commodities is expected to continue its long-term growth and commodity prices will continue to rise due to persistent demand and supply constraints associated with the sector.

India

A weaker rupee means there is an inflationary risk now but it makes India more competitive in the global scenario. Some companies have been negatively affected while others have benefited from higher foreign income.

If foreign investment in India increases, the strength of the rupee will increase and this seems to be spurred by the government’s decision to allow more than 50% ownership by foreign companies in the retail sector.

However, the general weakness in global equities and the fact that the Indian market is relatively expensive compared to other emerging markets means that large investment inflows into the country may be curbed in the near-medium term. This adds to the general volatility of Indian markets and investors around the world are looking to move their money into assets they consider safe due to the global financial environment, predicting that future investment trust activity in India is challenging.

Video about Provide One Example Of An Operating Financing And Investing Activity

You can see more content about Provide One Example Of An Operating Financing And Investing Activity on our youtube channel: Click Here

Question about Provide One Example Of An Operating Financing And Investing Activity

If you have any questions about Provide One Example Of An Operating Financing And Investing Activity, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Provide One Example Of An Operating Financing And Investing Activity was compiled by me and my team from many sources. If you find the article Provide One Example Of An Operating Financing And Investing Activity helpful to you, please support the team Like or Share!

Rate Articles Provide One Example Of An Operating Financing And Investing Activity

Rate: 4-5 stars
Ratings: 3088
Views: 11973906

Search keywords Provide One Example Of An Operating Financing And Investing Activity

Provide One Example Of An Operating Financing And Investing Activity
way Provide One Example Of An Operating Financing And Investing Activity
tutorial Provide One Example Of An Operating Financing And Investing Activity
Provide One Example Of An Operating Financing And Investing Activity free
#Introduction #Investment #Trusts #Emerging #Markets

Source: https://ezinearticles.com/?Introduction-to-Investment-Trusts—Emerging-Markets&id=7089955

Related Posts

default-image-feature

Pros And Cons Of Short Term And Long Term Financing Payday Loans – Pros & Cons

You are searching about Pros And Cons Of Short Term And Long Term Financing, today we will share with you article about Pros And Cons Of Short…

default-image-feature

Pros And Cons Of Seller Financing For The Buyer Purchaser Houston Foreclosures Websites Compared

You are searching about Pros And Cons Of Seller Financing For The Buyer Purchaser, today we will share with you article about Pros And Cons Of Seller…

default-image-feature

Pros And Cons Of Owner Financing Of Real Estate Deal Advantages and Disadvantages of Rental Guarantees

You are searching about Pros And Cons Of Owner Financing Of Real Estate Deal, today we will share with you article about Pros And Cons Of Owner…

default-image-feature

Pros And Cons Of High Schoolers Taking Personal Finance Classes Student Loan Debt Consolidation And You

You are searching about Pros And Cons Of High Schoolers Taking Personal Finance Classes, today we will share with you article about Pros And Cons Of High…

default-image-feature

Pros And Cons Of Going Public And Using Equity Financing Three Major Sources Of Funding Startups

You are searching about Pros And Cons Of Going Public And Using Equity Financing, today we will share with you article about Pros And Cons Of Going…

default-image-feature

Pros And Cons Of Getting Financing From A Vc Fund How Some Venture Capitalists Try To Rob You Blind

You are searching about Pros And Cons Of Getting Financing From A Vc Fund, today we will share with you article about Pros And Cons Of Getting…