Hantoo Asset Management: "Vietnam, India, Mexico, Indonesia Are Beneficiaries of Supply Chain Restructuring"

Hantoo Asset Management Holds India & VIM Seminar

Korea Investment Trust Management identified India, Vietnam, Mexico, and Indonesia as beneficiary countries of the global supply chain restructuring and presented related fund investment strategies.

Bae Jae-gyu, President of Korea Investment Trust Management, is giving a greeting speech at the 'India & VIM Seminar' held at Conrad Hotel Yeouido on the 20th. Photo by Kim Dae-hyun kdh@

On the morning of the 20th, Bae Jae-gyu, President of Korea Investment Trust Management, held the 'India & VIM Seminar' at the Conrad Hotel in Yeouido and said in his opening remarks, "We aim to find new breakthroughs amid the new global supply chain restructuring led by the United States," adding, "We will strive to find and provide promising investment instruments even in difficult environments."

Lee Sang-won, Executive Director and Head of Product Strategy at Korea Investment Trust Management, stated in his presentation, "Due to the global supply chain restructuring that began after the US-China hegemony war, alternative countries such as Vietnam, India, Mexico, and Indonesia have gained attention," and added, "As of last year, the scale of foreign direct investment (FDI) in these four countries has risen to about 71% of China's level. The FDI toward these alternative countries, which has already begun, is expected to accelerate further."

He further explained, "Vietnam has fostered labor-intensive industries based on abundant and inexpensive human resources, and India is growing as the second China," adding, "Mexico is considered the biggest beneficiary of the US Inflation Reduction Act (IRA). Also, Indonesia is transforming from a resource-rich country into an electric vehicle hub."

Kim Min-su, CEO of CMK Investment Advisory, continued with an analysis of the Indian market. Kim emphasized, "Since the implementation of Prime Minister Modi's 'Pradhan Mantri Jan Dhan Yojana (PMJDY),' represented by the account-holding campaign, India has transitioned into a digital society, attracting attention from global companies and institutional investors," and stressed, "Attention should be paid to manufacturing sectors such as infrastructure, durable goods, and discretionary consumer goods, where many investments are being made under government support and labor cost competitiveness."

Oh Hye-yoon, Head of Overseas Investment Management at Korea Investment Trust Management, presented emerging market investment strategies through funds. Currently, Korea Investment Trust Management holds the 'Korea Investment India Top 5 Group Fund' investing in representative Indian conglomerates; Vietnam funds such as the 'ACE Vietnam VN30 (Synthetic) ETF' and 'Korea Investment Vietnam Growth Fund'; and ETFs investing in Mexico and Indonesia, namely the 'ACE Mexico MSCI (Synthetic) ETF' and 'ACE Indonesia MSCI (Synthetic) ETF.'

Oh said, "Among Korea Investment Trust Management's various products, the Korea Investment India Top 5 Group Fund is differentiated by focusing on the five leading groups representing India," and explained, "The investment targets include Tata Group, known for automobiles and steel; Reliance Group, known for petroleum and chemicals; Infosys, a leading Indian IT service company; financial group HDFC; and consumer goods company Bajaj."

She added, "The Indian market has a 'winner-takes-all' structure where leading groups aggressively pursue mergers and acquisitions (M&A) based on their capital strength," and stated, "By including the Korea Investment India Top 5 Group Fund in your portfolio, you can effectively invest in future core growth industries led by the Indian government."

Plans for launching a new fund by Korea Investment Trust Management that diversifies investments across three emerging countries?Vietnam, India, and Mexico?were also revealed. Oh said, "Diversifying investments across three countries showed higher absolute returns and lower volatility compared to investing in a single country," adding, "Rather than simply tracking the market, the more excellent products that fit each country's style are included, the higher the absolute returns. Therefore, we plan to introduce products that include the best funds and exchange-traded funds (ETFs) by country style and size."

This content was produced with the assistance of AI translation services.