Ashmore Group, the London-based emerging markets specialist fund manager, is pushing to get ahead in the race to manage the money of increasingly-affluent EM savers.
On Friday it said it would open an office in Indonesia, which becomes the 10th country with an Ashmore base and the seventh EM. Clearly, the bulls at Ashmore think recent fears of possible bubbles in southeast Asian asset markets aren’t worth worrying about.
The new office in Jakarta joins a network which includes Brazil, China, Colombia, India, Russia and Turkey as well as Singapore, the US and the UK.
The PT Ashmore Asset Management Indonesia team will offer institutional and retail clients debt and equity through direct marketing and bank network distribution.
Mark Coombs, Ashore’s chief executive, said in a statement:
This subsidiary is part of Ashmore’s strategy to build a local presence in key emerging markets. Establishing our second operating office in South East Asia in Indonesia clearly demonstrates our confidence that there is significant growth potential in the country’s asset management market.
Ashmore gives plenty of reasons for investing in Indonesia: resilience to the global economic slowdown; forecasts of strong growth in 2013 and beyond, with The Asian Development Bank predicting GDP increases of 6.4 per cent in 2013 and 6.6 per cent in 2014; and a fast-expanding middle class of 74m people.
No mention of the concerns recently reported by Jeremy Grant for the FT who said that Credit Suisse analysts had found evidence of a property bubble, with prices rising 30 to 40 per cent in central Jakarta and by 50 per cent on the outskirts of some other cities.
Policymakers say they are aware of the risks. But Credit Suisse says they’re behind the curve. Ashmore is betting that, in Indonesia at least, policy makers will get things right.
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Indonesia: consumption strong but investment weakens, beyondbrics
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