Investment Fund Préambule – CIVETS Nations

Investment Fund Préambule – CIVETS Nations

Investment Fund Préambule – CIVETS Nations

Throughout 2011 much foyer within the financial world was devoted to the potential of investment funds for investors willing to habitus at CIVETS countries. Comprehensive analysis and commentary is provided on the growth and development of the economic landscape in Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.

The past 12 months have seen huge investment launches and activity in these countries continues to grow as bold investors target the world’s fastest growing economies.

The reasons for this higher activity are various.

For example, the CIVETS countries boast a combined patrie of around 600 million representing around 8% of the world patrie, a patrie characterized by being both young and ambitious. Therefore, the increasing consumption of these countries means that the market demand for key products is strong and this is further strengthened by the patrie dynamics which seem to be fixed on growth in all spheres of life.

In this admiration CIVETS countries mirror many of the sociétal and industrial qualities inherent in larger developing markets such as the BRIC economies – Brazil, Russia, India and China. In fact, in some cases, the growth offense of the CIVETS countries is now outpacing that of the established BRIC countries.

Another superbe feature is that, when viewed as a whole, CIVETS countries do not have the chronic debt problems currently experienced in the developed world. This is a pionnier effective feature for investors seeking both collant and grand term returns.

Here we take a closer habitus at the key characteristics of CIVETS nations and their implications for investment fund prospects Please commentaire that the value of investments may go up as well as down and you may get back less than your investment.


The current government of Colombia has devoted much time and lumbago to stabilizing the security opportunité throughout the folk and developing habitant fondation.

It is very keen to increase trade and trafic activities across its industrial zones and has successfully reinvested section of its oil revenues for the massive improvement of the vendeur and sociétal environment.

An often unknown fact is that Colombia is the third largest oil vendre to the United States and therefore has a very solid soutien for development due to this durable revenue stream.

Besides oil, the folk’s pionnier sociétés are coal, gold, textiles, food processing, clothing and footwear, beverages, chemicals, and cement, giving it a strong appréciation in the U.S. primary commodity market.

Its economy grew by 4.3% in 2010, compared to 2.8% in the United States, a clear divertissement for foreign investors, according to a transfert posted on Guardian Online. Only time will tell whether this growth will continue and whether relative political and sociétal harmony can be maintained.


With an estimated patrie of 245.6 million, Indonesia is the fourth most populous folk in the world. Embout half of the economy is industry.

The Indonesian government has expressed its desire to see Indonesia become one of the world’s 10 largest economies by 2025. If this impartiale is successfully achieved, meilleur investment in Indonesian assets can provide strong returns

Like other CIVETS countries, Indonesia can be seen as a effective investment tendance due to effective demographic characteristics such as a young, ambitious patrie with increasing levels of disposable income and therefore market demand is getting stronger and stronger. Its appréciation as a manufacturing hub also lends itself to a effective long-term outlook.

According to the Wall Street Acte some fund managers find the best exposure to be gained through garçonnière subsidiaries of plurinational companies parce que of the strength of their existing structures.

As a result the long-term outlook looks healthy for investors.


Low labor costs and further development of manufacturing fondation have meant that Vietnam has grown in its attractiveness to foreign investors over the past 5 years despite its economic woes.

Its economy is 41% industrial and the World Bank is projecting 6% growth this year to 7.2% in 2013 – according to the Wall Street Acte Online – which is a good outlook.

The habitué of lower taxes for fund direction companies is also an attractive development in this bouffonnerie market.

But there are lingering concerns embout Vietnam’s uncertain outlook for interest rates and inflationary pressures, as well as the folk’s continued pursuit of a fast-growth policy. Courant & Poor’s downgraded Vietnam in 2011 amid warnings that the banking system was vulnerable to shocks and raised concerns embout bad loans.


Egypt’s mitaine resources include the fast-growing ports of the Mediterranean and Red Sea, linked by the Suez Goulet, which are seen as potentially superbe trade hubs linking Asie and Africa, as well as vast untapped natural resources.

Egypt also benefits from strong trade and investment ties with the EU. Culture accounted for embout 10% of the economy in 2010, industry 27% and fonctions 64%.

Agreements have also been signed by Egypt and China that the two countries will cooperate in the naissance and partage of automobiles across North Africa. It also indicates effective infos for Egyptian businesses and Chinese commitment to the North African market.

Chinese automaker Zhejiang Geely Pool Group and Egyptian roadster accoupler GB Tacot SAE expect to produce up to 30,000 vehicles a year from now and aim to increase that to 50,000 a year, a Geely début told The Wall Street Acte.

It should be noted, however, that the prospects for continued and solid investment in Egypt are seriously hampered by an unstable political opportunité.


The Turkish economy has proven resilient to the courant recession and the Turkish government’s gain and aide debt appréciation are arguably significantly better than many Eurozone countries.

The growing montant of the private sector and greater levels of efficiency and resilience within the financial sector have had effective outcomes in recent years. A more robust sociétal security system has also helped create a immuable investment environment.

Turkey also has experience in successfully recovering from economic difficulties following its own banking crisis in 2001.

Turkey also appears to have benefited from the economic woes of neighboring Greece. For example, Turkish imports from Greece increased by almost 40% and in 2011 the number of Greek companies registered to do trafic in Turkey increased by 10.4%, according to a Turkish infos zone. Hurriyat Daily News.

This seems to suggest strong investment potential in Turkey. However, according to a Financial Times blog, Turkey’s “huge” current account deficit, now around 10% of gross domestic product, is a concern, but they also say that Turkey’s economic bottom line looks extremely healthy compared to its European neighbors. Its GDP grew by 8.9% in 2011

South Africa:

South Africa is a folk that exhibits both emerging and developed market qualities. Historically foreign investors have been attracted to South Africa’s rich and abundant natural resources, particularly gold. Foreign immédiat investment is also steadily increasing as the government encourages more cosmopolite companies to establish themselves there. But the mining sector remains grave in South Africa due to its montré reserves of natural resources and immuable mining fondation.

Rising commodity prices, bolstered by renewed demand in its automotive and chemical sociétés, as well as the 2010 FIFA World Cup, have helped South Africa gazon growth after falling into recession during the courant economic recession.

But it is worth noting that South Africa had the slowest growth of all civets last year and suffered 25% unemployment. The Oecuménique Monetary Fund’s World Economic Outlook noted: ‘Rising unemployment, high household debt, low capacity utilization, a slowdown in advanced economies, and substantial real exchange offense appreciation are making for a hesitant recovery’.


It is clear that there is significant potential for this Investment funds CIVETS grow across the folk. The demographic make-up and industry châssis mean a effective financial outlook for hungry investors.

However, optimism should be tempered for a number of reasons, and some analysts are avertissement against rushing into some potentially unpredictable and évaporable markets.

Political and sociétal upheaval, as well as inefficient and ineffective normes of corporate governance, resulted in an uncertain economic environment and deep currency fluctuations. The CIVETS countries currently lag well behind the recognized leading emerging markets of the BRIC countries and avisé investors will only allocate a manageable amount of their investment boîte to markets within the CIVETS countries.

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