CIVET (pronounced /ˈsɪvɨt/) is a small, lithe-bodied, mostly arboreal mammal native to the tropics of Africa and Asia. Well… not this time. I’m referring to other kind of CIVETS. I’m referring to the Emerging Economic group represented by Colombia, Indonesia, Vietnam, Egypt Turkey and South Africa.
Few years ago, money managers came up with a term to refer to an exclusive group of emerging markets: Brazil, Russia, India and China; and rightfully so. They have shown the world what aggressive economic growth is all about. But recently as they analyze other emerging economies they found that behind the BRIC group, there was another one rising. This group has captured the attention of investors around the world as they sustain a GDP growth of an average of 4.5% or more and attract billions of dollars in Foreign Direct Investments.
One of those convinced in the dynamics of these economies is the Investment Management Group Black Rock (BLK). They announced last week the creation of a new ETF (Exchange-Traded-Fund) in Colombia next year. The exact amount has not been disclosed but experts are predicting it will be a significant amount considering that the Wall Street Journal reported that they have $16 Billion dollars available for their new multi investment fund.
Further evidence of the continued growth that Colombia is facing is the creation of several REIT’s (Real Estate Investment Funds) that are targeting mega projects like the construction of the tallest building in Colombia -- the BD Bacata, a multi million dollar (U$181M) project that promises to deliver a high end hotel and residences to Bogota.
The big question is, what does 2011 bring to the world economy? Are the US and the EU going to lead the way? This is yet to be seen, but the truth is that for those looking around for high returns, the place to look is inside the CIVET.
By, Alejandro Tribin
December 12, 2010
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