Investments into a fog
Author BRIC advances new investment idea - countries MIST
Head Goldman Sachs Asset Management Jim O`Nil thought up in 2001 abbreviation BRIC and promoting ten years` inflow of the capital in these countries, is now occupied by popularisation of new investment idea - countries MIST. The group includes Mexico, Indonesia, South Korea and Turkey which are most significant after BRIC from the point of view of economic potential, and in short-term prospect even are more attractive to investors.
Jim O`Nil does not doubt in light economic future four developing economy largest after countries BRIC - Mexico, Indonesia, South Korea and Turkey. The economist has decided to unite their abbreviation MIST that it is possible to translate from English as “ a fog “ or even “ roll - a field “. On them it is necessary 500 million persons of the population and the general gross national product 3,9 trln dollars For comparison: In countries BRIC there lives 2,9 mlrd the person, and the total amount of economy is equal 13,5 trln dollars
Countries MIST enter into wider group Next 11 - 11 most occupied developing countries after BRIC. Besides specified above the countries it includes Bangladesh, Egypt, Nigeria, Pakistan, Philippines, Vietnam and Iran. Idea O`Nila that developing countries with the big population and low podushevym gross national products now can reduce the precipice separating them from the developed world, faster, than it would occur 50 or 100 years ago. In February, 2011 Goldman Sachs has started N - 11 Equity Fund, putting up money in the action of this group of the countries (except for Iran which market is closed for similar investments from - for the international sanctions). From the beginning of year profitableness of fund has made 12 % against 1,5 % at fund Goldman investing in countries BRIC.
In a case if new idea O`Nila becomes so popular, as concept BRIC, these countries will get serious support in sphere of investment appeal. First of all largest of them (on each of MIST it is necessary now not less than 1 % of global gross national product). For comparison: with 2001 for 2010 investors have enclosed in action BRIC 67 mlrd dollars, and profitableness of these investments has exceeded a similar indicator for actions of the companies from index S &P 500 on 281 %, has counted up Bloomberg. For last year, truth, investors have deduced from BRIC at once 15 mlrd dollars - the maximum sum since 1996.
“ We see stable inflow of means to fund Next 11 every week. They were mentioned in any way by disappointment concerning the USA and especially European markets, and also disappointment concerning some countries BRIC “ - Jim O`Nil has declared to agency. Results of fund surpass investment indicators of 93 % of the American investment funds specialising on investments in the action of the companies from developing countries. At the same time profitableness of fund Goldman focused on BRIC, concedes to indicators of 89 % of these funds. However, fund BRIC at bank is much more, 410 million dollars against 113 million dollars at N - 11.
Experts estimate new idea O`Nila carefully. “ yes, the occupied countries with a low standard of living can show high rates of increase of economy as it is catching up growth. But, except these two parametres, MIST unites nothing. South Korea, for example, the developed country with high level of incomes. Therefore MIST it is faster attempt to repeat a successful marketing course with countries BRIC which also a little than are similar “ - the economist on emerging markets Capital Economics Nile Shiring has told daily. But this marketing, as well as in a case with BRIC, can do good to economy of these countries, the expert has not excluded.
Thus O`Nil does not dismiss also country BRIC. Under its forecast, their economy will add on the average on 6,5 % a year till 2020 while for N - 11 this growth will make 5,5 % a year. However Nile Shiring considers such succession of events improbable. “ the potential of catching up growth in BRIC is almost settled, and such high rates as earlier, there already, most likely, will not be. Now they should move by the way of increase of labour productivity and essential reforms that is much more difficult “ - considers g - n Shiring.