Emerging markets (EM) have gained growing importance in global investment portfolios, providing exposure to fast-growing digitizing economies. However, many broad EM indices are narrowly concentrated, with >45% exposure to China and Taiwan today.
In the upcoming webcast, Why Emerging Economies are Poised for Some of Today’s Best Opportunities, Maurits Pot, Founder & CIO, Dawn Global Management, will explore the largest EM diversification opportunity for Financial Advisors in Asia through an innovative EM investment strategy focused on the Asian Growth Cubs, the single biggest Asian EM opportunity this decade located in Southeast Asia.
Specifically, the Asian Growth Cubs ETF (CUBS) is the first active thematic ETF to focus on public equities in emerging and frontier growth markets.
CUBS offers investors actively managed exposure to five large, fast-growing markets — Bangladesh, Indonesia, Pakistan, the Philippines, and Vietnam. These five economies have individually grown GDP faster than 6% a year in USD since 2000. In addition, Bangladesh and Vietnam have compounded GDP for 40 consecutive years, including 2020. Yet, these markets remain inaccessible to most foreign investors due to little or no ETF coverage or American Deposit Receipt listings.
CUBS aims “to invest in the fastest-growing next billion people, based in the highest growth countries in the highest growth region (IMF),” according to Dawn Global Management.
Dawn Global believes that active investment management is required to identify the most compelling growth companies in these less covered markets and mitigate company and governance risks. The investment process involves top-down company screening and bottom-up company analysis to identify the most compelling investment opportunities. The ETF’s high-conviction portfolio is reviewed quarterly and re-balanced twice a year through equal weighting across all securities to mitigate single country and single company risk. The portfolio is geared towards tomorrow’s economy, with a bias towards healthcare, telecom media technology, consumer goods, and financials.
Financial advisors who are interested in learning more about emerging Asia opportunities can register for the Thursday, April 7 webcast here.