News

Agency predicts boom in Asian infrastructure

shutterstock_563320966India and Indonesia are tipped to lead an infrastructure boom in South and Southeast Asia that will create numerous opportunities for investors in infrastructure debt. S&P Global Ratings has awarded mostly stable ratings to the 24 rated infrastructure companies it rates in the region and predicts their revenues will grow between 4-6% a year. By 2030, infrastructure spending in South and Southeast Asia will total $9.5 trillion, according to the Asian Development Bank. “Some of the world's most intensive investments in infrastructure will take place in countries in South and Southeast Asia,” said the agency, adding that, “the region's substantial investments in infrastructure will support growth and development in the region”. The report indicates attractive opportunities for investors in the increasingly popular asset class of infrastructure debt. However, the agency warns that “credit profiles could widen”. Infrastructure companies that rely on large amounts of debt are vulnerable to regulatory risks, rising interest rates or lower-than-expected revenues, it said. Some firms may also face disruption from new technologies, such as electric vehicles or renewable energy. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

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Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

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Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

Roundtables

SINGAPORE ROUNDTABLE: Optimism versus caution

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The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

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Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.