Planners eye Asia-targeted luxury manufacturing
Financial planners are increasingly looking to invest in Asia via exposure to luxury goods manufacturing in developed regions, according to Investment Trends.
While inflows to international assets had remained steady at 26 per cent, there had been a shift in the geographical regions advisers were investing in and intended to invest in, according to Investment Trends chief operating officer Eric Blewitt.
Last year, 21 per cent of advisers intended to invest in North America and the United States compared to 28 per cent this year, according to Blewitt.
"There has actually been a shift in the geographical regions that have been invested in, and more importantly that (advisers) are intending to invest in, so what we're actually seeing is a swing away from Asia and emerging markets more towards the US and North America," he said.
He said a number of factors were at play in the shift away from Asia and emerging markets, including uncertainty regarding market performance and currency movements and increasing demand for Western-manufactured luxury goods from China.
Some advisers believe the resource story in China had run its course, according to Blewitt.
"The resource linkage to China and Asia, in some advisers' eyes, is perceived as toppy and almost done its course, despite some of the iron ore prices, and what you've actually got is demand still coming out of China for Western-manufactured goods.
"Many of those are manufactured in the States, so they're looking to the growth in middle-income China via the sources," Blewitt said.
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