Image via WikipediaAAP Asia and other emerging markets offer Australian investors the opportunity to spread their funds and risks, a UK-based asset manager says.
Threadneedle head of Asia and Global Emerging Markets Equities, Vanessa Donegan, said the asset manager had been investing in Australia through its Asian and global funds for years.
"We are entering this market because we see a big potential for asset gathering," Ms Donegan said.
"We are also thinking of the opportunities that people will be looking a bit beyond the domestic market and diversify overseas, particularly given the exciting potential of Asia and the emerging markets."
Asia and other emerging markets such as Brazil would continue to offer better returns as the most of the economies in the developed world - the US and Europe - would remain sluggish, Ms Donegan said.
"The growth rates of these particular markets are superior to the rest of the world," she said.
"That is only going to continue, although next year the growth rates are likely to be not as high as this year because this year you had the benefit of the recovery in the trade side."
Among the investments Threadneedle offered were equity funds for Asia, global and emerging markets, and corporate bond funds.
"Also you may get the opportunity to gain from the rise of the emerging market currencies," she said.
"It is a good time here for investors here to diversify and we have some products that they may be interested in."
Uncertainty about the recovery in the world economy had weighed on financial markets for most of 2010, Ms Donegan said.
"It has been up until fairly recently," she said.
"It has been quite a difficult year this year because there has been this concern about the global economy and sovereign position of the European economies."
Ms Donegan said sectors to invest in over the next year included consumer discretionary, financials and industrial companies.
"Within the financial space, we like some of the emerging market banks in Brazil, Russia, India, Indonesia and China - where there is an under-penetration of financial services and demand for mortgages and where the banks are in reasonably good shape," she said.
Industrial stocks, particularly those associated with China, would benefit following the commencement of its 12th five-year plan for national economic and social development between 2011 to 2015.
"What we will see in the next five-year plan from China shortly is more spending on upgrading the manufacturing capacity to a higher level, Ms Donegan said.
Threadneedle manages assets worth nearly $US100 billion ($A101.55 billion) across US, Europe, Asia and the Middle East.
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