No longer a place where everything is produced, but nothing is invented, Asia is riding a wave of homegrown innovation with long-term investment implications. Today, companies in Asia are well-positioned to take the lead in many key sectors and industries that are benefiting from innovations from biotechnology and artificial intelligence to new banking frontiers and electric vehicle industry. Our rigorous proprietary research forms our insights into investment opportunities and risks to help identify the most attractive growth opportunities in Asia.
Matthews Asia recognizes that no two portfolios are alike. Our investment solutions address different asset allocation needs and offer multiple ways to access growth opportunities in Asia and broader emerging markets. With Matthews Asia, investors can tap into the power of Asia’s vibrant growth via a range of specialized strategies—all driven by an active, fundamental approach.
For more than a decade, emerging markets have been considered a core allocation for investors seeking long-term growth. The asset class has evolved, and Asia now dominates in terms of economic growth, consumption and trade. Today, Asia comprises more than 75% of the benchmark universe, the MSCI Emerging Markets Index. At Matthews Asia, we offer an active approach designed to optimize an allocation to emerging markets. Our quality growth strategy seeks to uncover investment opportunities with the potential to generate long-term outperformance.
Institutional portfolios commonly get exposure to China through a broad emerging market mandate which is typically weighted to large-cap “old economy” sectors. However, a new global study from Greenwich Associates reveals how institutions are planning to optimize their exposure to China—a well-established growth powerhouse. With a focus on the Asian consumer, innovative companies in China are channeling the buying power of a new, influential middle class greater exposure to domestic consumption and “new economy” companies.
Institutions are placing Asia closer to the center of their investment plans and priorities. Asia fixed income has the potential to help investors achieve higher yield and better total return for their fixed income portfolios within a defined risk/return framework. In today’s environment, Asia fixed income is worth consideration for those seeking total return potential and diversification.