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Wells Fargo Advantage Emerging Markets Equity Fund Portfolio Manager Derrick Irwin on where there are growth opportunities for investors in emerging m...
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OK so if you're looking at all of this and saying I can't deal -- -- this true.
Measly for me you look for opportunities perhaps outside the United States -- we thought we bring in somebody who specifically looks at a few.
Kind of side window and heels for you some idea from Derek -- what he's Wells Fargo advantage emerging markets equity fund portfolio manager joining us.
In a Fox Business exclusive from West Newton Massachusetts about two point seven billion in assets went.
What you're doing here and it's fascinating -- as -- look at what you're doing let's go -- her first.
To say you know what it doesn't matter that what looks like the safest bet is big US equities -- better multi nationals you are looking outside this.
Country but specifically the areas that look a little risky to me why.
Well I think that EMU -- you're exactly right when you talk about low growth in developed markets like the GDP number we saw this morning.
We -- in emerging markets in and we're looking across emerging markets of of growth and know five to five and a half percent range so ultimately what we're looking at -- growth.
And secondarily a lot of these countries that we're looking at how well they're perceived as very risky really over the last decade have become much less so.
Much better growth on how many of them have beaten high levels of inflation and have much lower levels of debt are so -- Don't happen -- the map Ghana Mozambique.
Nigeria and South Africa folks keeping in mind our second quarter GDP granted we are gigantic country compared to many -- those.
Is one point 5% let's show the GDP of some of these other nations.
Ghana eight point 8%.
Mozambique.
Six point 7% Nigeria seven point 1%.
That's all well and good part of me would say even trust the government with coming out of -- numbers but let's say we -- Why those three.
-- you know it it it I guess trust in the government is all relative but.
And you're exactly right that those are those are coming off the very low base and I and I -- be you have to also point out that many of much of that growth is driven by.
Commodities.
Growth but a lot of those economies again have reformed over the last.
Decade or so much better governments certainly not perfect governments.
Much better currency.
Scenarios much better indebtedness.
I'm so they are still very very young markets and often illiquid markets but if you can access them they do offer existing growth.
Well some of your biggest holdings Petrobras.
Bottle of Bradesco you've got Taiwan semiconductor Grupo Televisa and you've got trying to mobile let's pick up China Mobile.
Why -- -- that sort of correlate to a pick that would relate to those African nations.
Sure well I.
Not sure in an entirely the debt -- about directly at China Vissicchio I'm mobile being the largest mobile phone company in.
China really is a play on -- Chinese mobile's penetration.
But of course you know that mobile penetration China's gonna grow along with the Chinese economy -- -- the rest of Africa along with it.
So it certainly not a direct play on Africa many many of the companies what we're looking at to access Africa.
-- either in South Africa.
Or are some of the commodity big global commodities play.
Is that what makes sense another -- that you like is icici -- and that's out of India and and surely you what's going on their because you know you talk about.
Real growth in India when it comes to an emerging middle class very similar to China.
Yeah no in India India India's seen its growth -- slowdown.
Pretty dramatically in the last year but we're still talking about.
Growth way north of 5% for Ford China.
A few for India us a good solid underlying growth IC -- I think is is a leading.
Private sector bank in India they done a very good job of extending credit to the emerging middle class.
As home loans grow as personal loans grow they've done a great job.
And they've done a great job of accessing savings from the emerging middle class by expanding their branch network.
Throughout the country and taxes and low cost savings so.
Not -- -- that are they taking share and landing in in India.
But they're doing it using cheaper funding from low cost deposit.
Good to see Derek you know -- it scares people a little but sometimes they like to take just a slight corner that corner of their field of money and maybe take a little risk and we appreciate you giving us some idea us.
Us pleasure thank you Derek -- when he has Wells Fargo advantage emerging markets equity fund portfolio.
