Infrastructure and agriculture top themes for new Fidelity Asia head
The new manager of Fidelity International's recently launched Asia fund has raised his horns on Asian agriculture and infrastructure as key investment themes this year.
David Urquhart, manager of the recently launched Fidelity Asian Aggressive Fund, said emerging market infrastructure spending is set to more than double in the next decade to $3.5 trillion, with the majority committed to Asia.
He said there are a variety of opportunities to be found to exploit the infrastructure theme.
He said: “The infrastructure chain starts with mining – coal, iron ore and other materials. Shipping and logistics companies are then required to transport the materials – along roads, rail and via airports that also need to be built. Banks are called on to fund construction projects and the firms that do the construction work need equipment."
He added: “Likewise, agriculture is more than just food. Seed, fertilisers, pesticides and equipment are all required by farmers. They also need land, logistics companies to transport their produce to food and beverage companies, and then on to supermarkets. Asia already consumes almost two-thirds of the world’s soya beans and one-third of the world’s milk and meat."
The Asian high net worth individual popualtion is one fo the fastest growing in the world, according to the latest Merrill Lynch Capgemini World Wealth Report. Last year the HNWI population grew by 8.7% to 2.8 million. HNWI wealth in the region grew to $9.5 trillion.
Urquhart reasons that as the region’s population gains in wealth and eating habits change, demand for agriculture and infrastructure will only increase.
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