Asia exposure key to SMSF diversification: Seres, Acorn
Investment in Asian markets can enhance diversification of an SMSF and help secure adequate retirement income, say two Asia specialist fund managers.
Seres Asset Management and Acorn Capital have issued a statement suggesting Australian investors who are overly cautious about Asian investment are “missing out on growth opportunities that cannot be found elsewhere in the world”.
“Asia is characterised by market inefficiencies, a large investment universe and higher economic growth rates driving a rapidly expanding middle class,” said Acorn Capital head of equities Douglas Loh, pointing to the growth of China as a particular opportunity.
“Until recently, China’s economic growth has been driven by exports. However, the next stage of its development will see a growing consumer class purchase goods and services associated with a higher standard of living.
“A wide array of industries, including food, household goods, education, travel and health care spending for personal wellbeing will benefit from this growth.”
Mr Loh also told SMSF Adviser that there are specific reasons why SMSF trustees especially should consider Asian investment.
“Within the context of SMSFs (where the objective of investing is to provide for long-term retirement of members), investing in Asia will enhance diversification for the fund in addition to providing access to investment opportunities expected from the growing Asian economies,” he said.