67 WALL STREET, New York - June 27, 2013 - The Wall Street Transcript has just published its Investing in Asia Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investing in Asia - Longer-Term Investing - Asia Pacific Investment Theses - Investing in China - Equity Investing Strategies - China's Domestic Markets - Undervalued Asian Companies
Companies include: China Mobile Limited (CHL), PetroChina Co. Ltd. (PTR), Caterpillar Inc. (CAT), Freeport-McMoRan Copper & Gold (FCX), BHP Billiton Ltd. (BHP), La-Z-Boy Inc. (LZB) and many more.
In the following excerpt from the Investing in Asia Report, an expert portfolio manager discusses his portfolio-construction methodology and investment philosophy:
TWST: Would you give us three examples of your top Asian holdings?
Mr. Brock: Inside of our consumer themes we like a company called Prince Frog (1259.HK). Now, Prince Frog is one of the leading providers of children's lotions and shampoos. And as we talk about the consumer, there is one theme what we are trying to focus on, which is the growth of disposable income. It's well-known that income growth has been very high in China, but it's less appreciated that disposable income growth has been even higher. Once you are able to cover your basic needs of food and shelter and clothing, your spending power actually accelerates with income growing at double digits.
Prince Frog is an example of a company selling what was once a luxury item that's now becoming a staple. We saw that in sneakers, for example, around the time of the Beijing Olympics. Ten years ago no one was wearing sneakers in China. It was considered a luxury. But incomes grew, disposable spending power grew, and then sneakers have rapidly become a staple item on the everyday purchase, if you will. That's the same thing happening with children, and that spending power for premium products is enhanced with smaller families in China. In the past, people would just use the same soap or shampoo they use for themselves, but now because they have the ability to spend more, they are actually buying products specifically for their kids. Prince Frog is a big beneficiary of that trend and is building a very nice brand.
We have also investments in companies that sell high-quality, premium infant formula. And again, infant formula was a luxury item five or 10 years ago in China, but now with all the concerns about food quality and the ability to spend for higher-quality foods, particularly for the children, you are seeing demand for infant formula boom. A company that we own there is called Biostime International (1112.HK), and they are growing very significantly.
Another holding we have is...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry