AAA said that Brazil is set to remain the focus of much of the world’s alternative investment attention in the coming years.
Boston, MA, USA, May 5, 2012 — Alternative Asset Analysis, (AAA) said that Brazil is set to remain the focus of much of the world’s alternative investment attention in the coming years.
The views from the Alternative investment advocacy organization reflect those expressed by HSBC Global Asset Management’s Pedro Bastos. He recently spoke at a briefing on the health of the region to investors in Malaysia.
He said that the country remained a “hub” for the creation of businesses. He added, “Among all emerging markets, Brazil has been the best performer for the last ten years, both in equities and fixed income.”
He added that the population of Brazil has become richer and more and more people from outside the country are starting to see it as a good prospect. This is particularly true for alternative investments in sustainable forestry through firms like Greenwood Management, added AAA’s analysis partner, Anthony Johnson.
Bastos told delegates: “Companies see Brazil as a major consumer market. We have an increasing middle class, which is about 55 per cent of the population. In the last ten years, personal income growth has been consistent at 4.5 to five per cent.”
Mr Johnson explained that the demand from inside Brazil for steel is exceptionally strong as the country is due to host the Football World Cup in 2014 and the Olympics in 2016. In the meantime, the country is also going through some major growth and is improving its infrastructure as a result.
Steel is also very much in demand in other growing economies, such as India and China, explained Mr Johnson.
He explained “The steel industry needs charcoal and charcoal comes form timbers. Brazil has passed laws to try to prevent the industry taking charcoal form forests and, as a result, there is major demand for sustainable produced charcoal.”
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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