Investment Life Magazine November December 2013
Investment Life is Southeast Asia's newest and most influential investment and lifestyle publication aimed at High Net Worth Individuals. With content that ranges from news, opinion and investment insight from some of the leading journalists and industry leadership across the region. This is a publication for the aspirant investor and those interested in fresh and relevant opinion.
INVESTMENT & LIFESTYLE GUIDE â€˘ DISPLAY TO DECEMBER 31ST 2013 www.investmentlifenews.com A Barrel of Fun How wine investment combines passion with prudence Why investors are getting in on the ground floor Asian Art The Luxury Investment Index Get rich and enjoy doing it PERFORMANCE Alternative asset classes that deliver ISSN 2251-3949 THE S Stocking fillers for the ambitious Most Wanted I S U E 01 9 772251 394009 WIN in this edition! signed F1 sports memorabilia, estate wine www.knightknox.com +44 (0)161 772 1370 Knight Knox International is a leading provider of buy-to-let developments to the private investor market. Specialists at sourcing investment opportunities in both new-build residences and high-end refurbishment projects, our portfolio of both completed and future stock is testament to the quality of the products we bring to market. With a portfolio of prime new-build, residential buy-to-let apartments, we o er a wide range of opportunities to suit all investment needs, including a number of buy-to-let options available in the highly sought-after rental markets of Manchester and Liverpool. X1 The Quarter, Liverpool A ve-phase development in the heart of Liverpool's waterfront 1/4 mile from Liverpool Marina Albert Docks Views to Liverpool city centre on selected units X1 The Exchange, Manchester 132 residential 1 and 2-bed apartments 10 minutes from Manchester city centre Private parking on selected units X1 The Edge, Liverpool New-build development 231 double-bed en-suite rooms Built by experienced student developer In association with: OPENING BELL A portfolio of investments is highly personal – just as each one of us has varied idiosyncrasies, as well as a unique set of fingerprints so will our choices of investments be a reflection of our unique circumstances, our personalities, our desires and future plans. In a financial and investment environment that is today characterised by upheaval many investors are seeking to diversify their holdings away from stocks and bonds and into investments that, while offering superior returns, also contribute towards increasing their quality of life. These are the passion investments. It is an examination of these investments, as identified by the Knight Frank Luxury Investment Index that is the foundation of the feature section of our first edition of Investment life. There is an ongoing debate with the investment community as to whether many of these investments, such as art or classic cars, or even fine wine deserve to be recognised as asset classes at all. This is in my opinion, an argument of semantics. The truth of the matter is that by purchasing a piece of fine art one is investing in an asset that will (all thing being equal – admittedly a dangerous assumption in this investment environment) provide a return on investment. In the case of assets such as wine and classic cars that return over the medium term is nothing short of spectacular. Of course this is a highly volatile grouping of assets – any investment that relies on the fickleness of human emotional attachment and the cyclical, yet arbitrary nature of trends is bound to be risky. However the fact of the matter is this – these assets offer superior returns on investment, but are however subject to a healthy tolerance for speculation. Why is this different from any other high-risk investment? With that question and the possibility of finding an answer I would like to welcome you to the inaugural edition of Investment Life. THE TEAM MANAGING DIRECTOR/PUBLISHER ALEXANDER KNIGHT firstname.lastname@example.org STEVEN MALLACH email@example.com MANAGING EDITOR TREVOR WATLING firstname.lastname@example.org DIRECTOR, KEY ACCOUNTS SALES DIRECTOR MIRIAM RAHMAN email@example.com APRIL PORTEOUS firstname.lastname@example.org ARIF VILLANUEVA ADIL email@example.com ART DIRECTOR BUSINESS DEVELOPMENT HONG KONG PAULINE DYCOCO firstname.lastname@example.org VITTORIO HERNANDEZ email@example.com JONALYN FORTUNO firstname.lastname@example.org AVIESSA KHOO email@example.com MARK MARTIN firstname.lastname@example.org NORIANTY ASMAT email@example.com KRITI JINDAL SCOTT O. TALBOT JAMES NORMAN NAMTA GUPTA CIRCULATION AND DISTRIBUTION CONTRIBUTORS OFFICE MANAGER UK SALES SALES EXECUTIVE EDITORIAL ASSISTANT SENIOR EDITOR DESIGN ASSISTANT SASHA RITZER firstname.lastname@example.org Steve Mallach MANAGING EDITOR Investment Life GET YOUR FREE SUBSCRIPTION AT http://www.investmentlife.asia/subscription.html or email us at email@example.com DOWNLOAD OUR iPad and iPhone app from the Apple App Store We really want your feedback! Please contact us: Tel: +65 6534 9390 / email: firstname.lastname@example.org For regular updates and more commentary you can Like! us at facebook.com/investmentlifemagazine Investment Life is published by Panashco Media Pte Ltd is registered in Singapore 201127591R. Copyright © Panashco Media Pte Ltd 2013. All rights reserved. Any content of Investment Life may only be reproduced, in any shape or format, with the expressed permission of Panashco Media Pte Ltd. For reprints please consult the advertising department. While every care has been taken in the production of this publication, the publishers take no responsibility for any views expressed, errors, loss, or omissions that may occur. Currencies quoted are for information purposes only – and are accurate as we went to press. Printed at Times Printers, Singapore. MICA: 165/04/2012 • ISSN 2251-3949 FREEHOLD RESORT APARTMENTS AVAILABLE FOR SALE • Attractive Mortgage terms available • Beautifully furnished Residences situated within this Five Star resort with prices from €215,000 for a one-bedroom garden view and from €405,000 for a two-bedroom sea view • Generating solid rental income which contribute to owner annual fees and maintenence charges • 11 km from the old town of Dubrovnik, one of Europe’s fastest growing tourism destinations • Operated by an international management company under license with Radisson Blu Hotels & Resorts • Croatia is now a member of the EU OPP recognize The Residences at Sun Gardens Dubrovnik as Best Global Developer & Best Developer Europe 2012 For further details contact: The Residences Sales Centre +385 (0) 20 361 650 email@example.com | www.dubrovniksungardens.com Contents NOVEMBER-DECEMBER 2013 16 Passion and Performance According to Knight Frank assets such as art, wine, classic cars and even stamps can insulate a portfolio against market volatility. What sort of returns can the investor expect from these nontraditional assets and passion investments? Investment Life takes a closer look. ON THE COVER – Chateau Lafite Rothschild from the exceptional 1982 vintage. 1 double-magnum & 12 bottles sold at Christie’s first auction in Mainland China for USD $89,268. Image courtesy Christie’s Images Limited. 20 Intelligent Partnership 28 Take a Seat During times of market volatility alternative investments can mitigate risks. Investment Life asks Daniel Kiernan, Associate Director at Intelligent Partnership in London to explain more. 38 Seeing Red 44 Art Class Why exactly do fine wines excite the imaginations of investors? Why antique furniture keeps delivering superior investment returns. 30 Time Gentlemen 32 Investing in classic and collectable timepieces continues to provide above average returns. Is fine art an indulgent symbol of investor self-expression, an unpredictably volatile investment or simply supply and demand gone mad? Perhaps it’s all three. Chinese Ceramics Domestic investment in cultural iconography and collectables is powering a resurgent interest in Chinese Ceramics. 47 A SEA Change Changing gallery clientele and new areas of interest may be a sign of a uniquely Southeast Asian take on art as investment. 51 Heads you win Head or heart - how do you decide on your gold coin investment strategy? Fashion or 36 High Great Value? New designs and classic settings are renewing interest amongst jewellery investors. 54 Under the Hood Driving positive sentiment classic cars delivering exceptional alternative investment returns. â€˘ Pointers on the potential for buying investment property overseas, including letting potential and visa or residency offers Contents NOVEMBER-DECEMBER 2013 65 75 78 F E AT U R E S 81 88 OUTSOURCING 78 THE EVOLUTION OF SOUTHEAST ASIA Investing Philippines - the emerging Asian Tiger. 65 FROM RUGS TO RICHES 68 GOING POSTAL Can China save the dying collectible stamp asset class? Can investors leverage the handmade quality of Persian and other fine carpets to provide a solid alternative investment? The answer is a qualified yes. IN 100 INVESTING SHALE OIL Does the exit of an oil supergiant mean investment opportunities for smaller players? FINAL FRONTIER 81 THE FOR INVESTMENT STEM CELL 88 CAN STORAGE DELIVER REGULARS 01 OPENING BELL THE MANAGING EDITOR 06 NEWS 08 ASIA FOCUS 10 BY THE NUMBERS 12 HEARD RECENTLY 14 MOST WANTED 90 POWER LUNCH - SERENITY 102 THE WORST INVESTMENT DECISIONS IN THE WORLD FLOWER POWER 104 CLOSING BELL – THE PUBLISHER What is it about space that is capturing the imagination of investors across the globe? 70 COOL BRITANNIA How property investors can take advantage of London’s outlying suburbs. INVESTMENT VALUE? There’s a company that’s got news for you. 72 AUCTION INSIGHT 75 SEA SICK The Christie’s view of alternative investments in Asia. 91 GET IN THE GAME Sentiment and success lift memorabilia and collectibles markets. So you want to invest in a yacht? LATEST CREDIT SUISSE 96 THE GLOBAL WEALTH REPORT The Rise of Asia. NEWS 8 investment banks Shift to Markit Messaging service Investment banks are updating their systems in a bid to catch up with the fast-paced development of information technology. On October 7, 2013, eight of the largest investment banks in the world joined the industry-wide central directory switchboard that connects the messaging system of Thomson Reuters, Goldman Sachs, Deutsche Bank, Citigroup, Credit Suisse, Barclays, JPMorgan Chase, Morgan Stanley, Bank of America Merrill Lynch and GFI Group, an interdealer broker. The roll out of the free viral messaging service by Markit, a UK data provider, challenges Bloomberg’s hold on daily communications in the financial markets. Instant messaging on private networks is considered one of the many ways that industry stakeholders participate in the financial markets by exchanging daily information, which drives trading. It is part of the search by financial service companies to find ways to share on the rising cost of IT and compliance requirements. ‘This is about helping our customer find new counterparties and unearth new business opportunities whilst reducing complexity’, Financial Times quoted David Craig, president of Financial and Risk at Thomson Reuters. Bloomberg charges $20,000 per terminal yearly, prompting subscribers who are shifting to Markit to describe the service as ‘a very expensive Facebook’. Nigeria’s Investment Image Improves The more than USD $500 billion investment commitments and projects at different stages of execution are indicators of Nigeria’s coming of age as an investment haven. With a president named Dr. Goodluck Ebele Azikiwe Jonathan, good luck appears not to run out on this African nation recently ranked by KPMG – one of the top audit, financial and tax advisory companies in the world – as one of the four major global investment destinations and growth areas. In 2011, the United Nations Conference on Trade and Development’s World Investment Report 2012 likewise named Nigeria as Africa’s biggest destination for foreign direct investment (FDI) after it received USD $8.92 billion FDI, followed by South Africa with USD $5.81 billion. South Korean companies are among the biggest investors in Nigeria. Among them are Ibaka Deep Seaport, Brass LNG/Shipyard and Koo Oil & Gas Complex, which are shipyard builders. The other potential industries for investment are in agriculture, mining, iron and steel development, security, construction, oil and gas, refineries and petrochemicals and diaspora fund remittance. However, flow of investment funds is also two-way with Bonny Gas Transport, a subsidiary of the Nigeria Liquefied Natural Gas Company, ordering six new LNG vessels with South Korean giants Samsung and Hyundai Heavy Industries. Samsung to Cut Chip Investment SAMSUNG ELECTRONICS, the world’s top supplier of memory chips, plans to cut its investment in components by as much as 30 percent next year. The company doesn’t plan to build any more plants to make memory chips because the industry is undergoing rapid structural change. Industry officials at Samsung’s local primary parts suppliers say that aggressive investment does not guarantee high returns anymore due to industry consolidation as well as rising uncertainty surrounding technology and sluggish demand. NOVEMBER / DECEMBER 2013 ISSUE 01 Bad News for Europe’s Banks: LONDON (Reuters) - Grim investment bank revenues, a mixed economic backdrop and increasing regulatory and legal concerns are set to weigh on results from three of Europe’s biggest banks on Tuesday. But Britain’s biggest domestic lender Lloyds Banking Group will buck the trend by reporting a sharp rise in third-quarter profit, benefiting from the improving health of the UK economy. European banks are set to echo the grim performance shown by Wall Street’s big banks in fixed income, where revenues - which account for about half of total investment bank income - were down about 15 percent on average from a year ago. Banks in Europe could fare even worse, analysts said, a downturn that could intensify scrutiny on how far Deutsche Bank and UBS are shrinking and realigning their investment banking arms. Deutsche Bank is expected to say its third-quarter pretax profit fell 43 percent to 642 million euros ($886 million), a Reuters poll showed. Goldman Sachs Sees Gold Falling in 2014 The gold price—currently hovering around the $1,300 an ounce mark— will likely fall to $1,100 an ounce next year, according to a forecast from investment bank Goldman Sachs, as quoted by Reuters. The investment bank’s exact 2014 price expectation is $1,144 an ounce. For the time being, “gold will likely remain volatile,” analysts predicted, staying in the $1,250 to $1,350 an ounce range until the Federal Reserve’s “tapering” policy becomes clearer. At press time, gold was trading at $1,346 an ounce. It began the year at $1,657. www.investmentlifenews.com • 6 NEWS World’s First Bitcoin ATM Opens Three young entrepreneurs have opened an automated teller in Canada, saying it’s the world’s first ATM able to exchange bitcoins for any official currency. The machine, delivered to Vancouver by Robocoin, an American manufacturer, stands against a wall of a popular coffee shops and resembles an ordinary cash ATM. However, instead of cash transactions it swaps Canadian dollars for bitcoins, the virtual currency of the internet invented in 2008 by an anonymous computer scientist known only by the pseudonym Satoshi Nakamoto. Customers lined up there on Tuesday to use the ATM, then used their smart phones to buy coffee and muffins at the Waves coffee shop. The ATM is the world’s first, said co-owner Mitchel Demeter, a local entrepreneur who started trading in bitcoins several years ago, then earlier this year with two partners set up Bitcoiniacs, a Vancouver storefront money exchange. He and his friends, who were high school students together, said they saw ATMs as a business opportunity. EUR € 30 That was the amount of foreign direct investments into Ireland in 2012, according to the country’s Central Statistics Office or the equivalent of USD $40.7 billion. It is almost double the EUR €17 billion (USD $23 billion) foreign direct investments in 2011. The increase mainly came from The Netherlands (EUR €22 billion or USD $30 billion) and Asia (EUR €5 billion or USD $6.8 billion). The CSO explained that the figures show the immediate source of the money instead of the nationality of the parent company. Thus, an investment in an Irish subsidiary by a Dutch subsidiary of a US multinational was recorded as investment from The Netherlands. BILLION ISSUE 01 USD $13.3 It is the property investment sales in Singapore in the third quarter of 2013, a record level. It broke the old record of USD $12.4 billion in Q3 2007, according to a DTZ report. Property investments include sale of land, buildings and multiple residential and commercial units worth a minimum of USD $5 million each. Among these investments were the sale of seven hotels totaling USD $2.86 billion or USD $1 million per room. These include the Grand Park Orchard hotel, Gallery Hotel, The Sentosa Resort & Space and Hotel 1929. • BILLION NOVEMBER / DECEMBER 2013 EXTRA BITCOIN NEWS The Best ROI – EVER Four years ago, Christopher Koch was working on a thesis paper about encryption. His research led him to the budding digital currency known as Bitcoin and on a whim, purchased 5,000 Bitcoins for just $27. He quickly forgot all about his investment until widespread news reports jogged his memory this past April. There was just one problem - Koch had forgotten the password to his Bitcoin wallet. Fortunately, he was able to remember it after some trial and error and when he logged in, he quickly realized the initial $27 investment was now worth $866,000. Based on today’s exchange rate, his nest egg would be worth more than a million dollars. After just one month of sales, County Garden sold that number of units at its Danga Bay project in Johor Bahru in Southern Malaysia. The sales of the Guangzhou-based property developer is estimated at CNY 9.1 billion yuan (USD $1.49 billion). Ruan Jiasheng, president of Country Garden’s Malaysia branch, pointed out that level of sales is rare in the Malaysian real estate market and is even higher than the annual total sales in Johor Bahru. He explained the good volume of sale to Country Garden being the first Chinese developer in the area, making residents of Chinese origin seize the opportunity to invest in real estate. 6,000+ UNITS 7 www.investmentlifenews.com NEWS Investment Life Asian Focus: Aging Threat to SEA Coconut Industry Asia’s coconut palms, which mark the landscape from the Philippines to India, face a crisis as rapidly aging groves become less productive, curbing harvests that are a source of food and income for millions. India, Asia’s third-largest economy, is the top producer, harvesting 17 billion nuts last year, followed by Indonesia, which gathered 15.4 billion, and the Philippines, with 15.2 billion, according to the Asian and Pacific Coconut Community. The trees, many of which were planted about 50 to 60 years ago after World War II, no longer yield enough to meet rising global demand, according to the Romebased Food & Agriculture Organization. There’s an urgent need for replanting and rejuvenation, said Hiroyuki Konuma, regional representative for Asia and the Pacific at the United Nations agency. At stake is the productivity of a core part of the rural economy in the Asia-Pacific, which accounts for about 85 percent of the global supply of the commodity that goes into food, fuel, soaps and cosmetics. In the Philippines, among the three biggest growers, one in five people depends on the crop to some extent. More than half of Indonesia’s 4 million hectares of palms are aging, or over 50 years old, said Irawadi Jamaran, chairman of the Indonesian Coconut Board, which groups producers, processors and sellers. The main problem for the industry is a lack of government attention.“Coconut is often overlooked by many people because we’re always looking at rice and oil palm, and people don’t think coconut is an important one: this is not true,” the FAO’s Konuma said in an interview. Asia Needs to Look to Home for Infrastructure opportunity Asia needs infrastructure investment to boost intra-regional trade in order to counter weak demand from Europe and North America, says Donwoo Ha, director of the Transport Division at the United Nations Economic and Social Commission for Asia and the Pacific (UN Escap). Ha suggests that many Asian nations have invested a lot in establishing trade relations with Europe and the US and as a result have become overly reliant on these deals and on maritime transport. The region has invested a great deal in seaports, which are now not working to capacity because of weak demand from overseas trading partners, says Ha. “Their economies therefore very much concentrate on coastal areas, neglecting many developments that could happen inland. The development of dry port areas would help cluster logistics services, manufacturing and processing around them,” Ha told the Bangkok Post. In order to counter this effect, Ha has suggested that Asian nations look to refocus their investment in hard infrastructure projects, like roads and railways, and on building more solid institutional infrastructure in order to sustain prolonged growth in the region. According to the Asian Highway Database, around eight percent of the total highway network remains below regional standards and requires significant investment. He said there was already a shift of investing patterns as investors were attracted to yields from the commercial sector which could be higher compared with residential properties. NOVEMBER / DECEMBER 2013 ISSUE 01 Investors in Malaysian Property Shift Focus Kuala Lumpur Property investors could be shifting their interest to commercial properties following new cooling measures introduced by the Government to curb speculation in the residential property market. However, demand for office space could be suppressed by supply that are already in the pipeline arising from big commercial projects like the Tun Razak Exchangeand the Warisan Merdeka Tower. “The good news is that demand is still there with a take-up rate of three to four million sq ft of office space every year. However, the issue would be on the supply side which would certainly put pressure on the market and this would be a cause for concern. “However, it would just be temporary until it is absorbed by the market in three to four years,” said property consultant Knight Frank Malaysia managing directorSarkunan Subramaniam at the launch of its Global Investment report yesterday. www.investmentlifenews.com • 8 NEWS Growing Choice for Investors in Malaysian Palm Oil Despite accusations of being contributory to climate change, Malaysia’s palm oil sector is still a potent growth engine. Although Malaysia’s palm oil industry is being accused of contributing to global climate change, it has nevertheless been a potent growth engine for the South-East Asian nation and even neighbour Indonesia. Palm oil production and processing has either become a growth industry and valuable source of export dollars for these two countries or provided a source of affordable food imports, in the process, advancing global economic expansion. At Bernama’s Palm Oil Industrial Cluster (POIC), several Malaysian and foreign companies have begun operations, covering different downstream industries and the biodiesel sector. Datuk Dr Pang Teck Wai, chief executive officer of POIC, said that Malaysia’s palm industry is expected to boost production volume to 100 million tonnes of biomass by 2020 from the current 80 million tonnes. He added the potentials go beyond palm oil but extends to all oil palm wastes. In turn, biomass could generate additional increment to Malaysia’s gross national income by value adding on 20 million tonnes of biomass produced locally. But that would involve the upgrade of capabilities of existing support industries, which calls for investments. The first phase would focus on major palm oil industries like refineries, biofuel plants, oleochemicals, biomass and fertiliser plants, which would require a central steam provider, bulking installations and dedicated jetties. The second phase would be a broaderbased cluster, encompassing energy-intensive sectors, cocoa, ship repairs and construction, food, furniture and machinery sectors. Pang said POIC Lahad Datu is an attractive setting for investment opportunities, particularly its strategic location. USD $38 Malaysian state-owned oil and gas company Petronas committed that amount to build a liquefied natural gas plant in British Columbia in Canada and the pipeline to feed it. Canadian Prime Minister Stephen Harper secured the commitment from Petronas when he attended the Asia-Pacific Leaders’ Summit in Bali, Indonesia on October 6. Petronas purchased in 2012 for over USD $5 million Alberta’s Progress Energy. BILLION USD $800 ACWA Power, the water and power project developer in Saudi Arabia, plans to sell that amount of Islamic bond this year and list on the country’s bourse by the end of 2014. With the amount of funds to be raised from the bond offer, ACWA targets to put in place 38,000 megawatts of power by 2017 from the current 15,850 MWs. ACWA Chief Executive Paddy Padmanathan believes it would not be necessary for the company to secure a credit rating prior to the launch of its sukuk or Islamic bond. He explained: ‘That was one o the things that kept us back for a while, and there was a decision (internally) around ‘do we need to be rate’ as ratings area one-way street – once you rate, you are stuck with the story forever’. BILLION ISSUE 01 • NOVEMBER / DECEMBER 2013 Some tech stocks, including electric-vehicle maker Tesla, entertainment-streaming provider Netflix, Priceline.com and search company Google are doing much, much better. These stocks are up as much as 470% over the past year. In the minds of some there’s a certain sinking feeling of déjà vu. Some market commentators in the United States are getting a bad feeling about the current exuberance surrounding the tech IPO action and dizzying valuations. The frenzy surrounding the Twitter IPO is certainly not helping any. So far this year, the Dow has climbed 19%, the S&P 500 24% and the Nasdaq 30%. When a select group of speculative stocks trading at huge multiples of their earnings due to high expectations for future earnings that momentum can be harder to sustain the gains than in a bull market led by companies with moredependable earnings. “It reminds me of the tech go-go years of the late 1990s,” says Jack Ablin, chief investment officer of BMO Private Bank. 470% 9 www.investmentlifenews.com NEWS AsianEnergyInvestment RequiredUrgently: The International Energy Agency (IEA) says Southeast Asia (SE) will need $1.7 trillion in energy investments over the next two decades to cope with a surge in demand and counter growing reliance on oil imports. It said the region’s energy usage was still low at half of the global average but demand is likely to increase by more than 80 percent through 2035. An IEA report projects Southeast Asia’s oil imports to rise to just over 5 million barrels a day by 2035, making it the world’s fourth-largest oil importer. It warned that heavy dependence on oil imports could see the region more vulnerable to potential supply disruptions, and estimated that $1.7 trillion in investment is required to boost energy security. The region’s huge appetite for energy will see its bill for imported oil surge to $240 billion by 2035, leaving nations exposed to price shocks, the IEA added. The region will guzzle more than five million barrels of oil per day – double current levels of consumption – to fuel its breakneck economic growth, the IEA said. Total energy demand is expected to increase by more than 80 percent over the same period, according to the agency. The 10 members of the Association of Southeast Asian Nations (ASEAN) will need to invest a total of around $1.7 trillion in energy-supply infrastructure between now and 2035, it predicted. It forecast the region would become the world’s fourth-largest oil importer, after China, India and the European Union. Indian scooter sales have clocked a growth rate of 26% in the past four years, compared with 15% for motorcycles, aided by better urban infrastructure and popularity among Indian women - who constitute 40% of first-time buyers. The shift is a goldmine for scooter companies like Honda and local two wheeler manufacturer Hero. Scooters are not only the fastest growing segment of the Indian automotive market, but are increasingly taking on their most-erstwhile rival - bikes, as the gearless vehicles gain favour in the country. Increasing urbanisation and female buyers have given a fillip to the sale of scooters across India. Honda Activa displaced the two-decade-old market leader Hero’s Splendor motorcycle from the top slot in September. Scooters already outsell bikes in many significant markets like Chandigarh, Imphal, Goa and Kerala. Robust growth over the years has also helped scooters bridge the sales gap with bikes in other major markets like Delhi, Mumbai, Chennai and Pune. +26% NOVEMBER / DECEMBER 2013 MongoliaLevelsPlaying FieldinMininginvestments Mongolia just passed a law that ended different treatment of foreign and local mining companies, in effect leveling the playing field. The new rules follow a chain of events in the mining industry, including progress on funding for the next phase of the Oyu Tolgoi mine, which is being developed by the Rio Tinto Group, said Mongolian Cabinet Secretary Saikhanbileg Chimed. Another event is preparations to list the state-owned Erdenes Tavan Tolgoi mine. These twin measures are expected to boost business confidence, he said. ‘When we make a final decision, there should not be any political… When we make the initial talks of course maybe the politics comes up but the final approach in terms of policy should be a normal business practice. A practical decision should be followed’, Blooomberg quoted the minister. Saikhabileg said resolving the Oyu Tolgoi financing package is the number one priority of the Mongolian government, and it should be made by the mining company’s directors, not by politicians. Mongolia enjoyed a 17.5% growth rate in 2011, but its mineral resource boom slowed due to the elevated level of resource nationalism fueled by the election cycle, which caused investor confidence to dip. As a result, there was failure to agree on the terms of a USD $5.1 billion expansion of Oyu Tolgoi, causing the lay off of 1,700 workers. USD $2.8 A study published in June by the ChinaBrazil Business Council (CBBC), a Rio de Janeirobased group found that Chinese Foreign Direct Investment in Brazil fell to $8 billion in 2011 and $2.8 billion in the first six months of 2012, the last period for which the CBBC tabulated such data. Investment from China soared from $95 million in 2009 to a whopping $13.1 billion in 2010, but has since fallen sharply. The CBBC report, based in part on interviews the group held with executives from Chinese companies and their Brazilian partners, said Chinese investments focused on natural resources “have plummeted” since 2011. The report attributed the drop to “uncertainties regarding Brazilian policies,” highlighting recent changes to mining laws as well as new restrictions on how foreigners buy land. “These and other related policies are ausing companies to hold off investment plans,” the CBBC said. BILLION 10 www.investmentlifenews.com ISSUE 01 • AiR The alternative investment sector is extremely wide ranging and the AiR reports aim to educate the reader and aid their understanding of the sector. Our analysis is based upon in-depth market research; giving readers an up to date snapshot of the types of alternative investment products available in the market. Comprising a market update, demand and supply factors, investment considerations as well as activity and potential in the sector. Our reports are primarily aimed at advisers, intermediaries and professional investors that want to carry out research on the sector and investment opportunities available. ALTERNATIVE INVESTMENT REPORTS “FEIFA recognise the need for balanced, informative and regularly updated research on different asset classes. The AiR reports are an extremely valuable resource for any adviser researching the alternative investment sector and the various products and strategies in the market; we are pleased to be able to make their reports available to our international membership base of financial advisers and wealth managers.” Paul Stanfield, Chief Executive, FEIFA “Intelligent Partnership are undoubtedly the leading provider of research, reports and education on Alternative Investments; as a professional investor or intermediary we would urge you to read their regular editorial in Investment Life and to access their reports on the various alternative investment sectors they cover – there really is no better place to get this quality of research.” Steven Mallach, Editor, Investment Life ALTERNATIVE INVESTMENT REPORT “Alternative” is a very broad term which is often used in the investment world to categorise any asset class that isn’t part of the mainstream public markets such as equities, funds or bonds. Assets covered include property, land, forestry, energy, farmland, precious metals and collectibles. AiR ALTERNATIVE INVESTMENT REPORT AiR AiR AiR ALTERNATIVE INVESTMENT REPORT ALTERNATIVE INVESTMENT REPORT PURPOSE BUILT STUDENT PROPERTY – 2013 ENERGY AND RENEWABLES – 2013 HOTEL AND RESORT PROPERTY – 2013 INDUSTRY REPORT - FEBRUARY 2013 www.intelligent-partnership.com/reports INDUSTRY REPORT 2013 PURPOSE BUILT STUDENT PROPERTY ENERGY & RENEWABLES HOTEL & RESORT PROPERTY FORESTRY (COMING SOON) COMPLIMENTARY COPIES PLEASE VISIT: FOR INVESTMENT LIFE READERS www.AiReport.co.uk/a/ILIFE Intelligent Partnership Ltd 0044 203 375 1700 AiR@intelligent-partnership.com www.intelligent-partnership.com 2013 FEATURE worldwatch Heard During October "I think we actually have the major players in liquefied natural gas here, there’s at least 10 of them here with significant opportunity to want to make some investment.” "I think it is really possible we’ll see massive Chinese investment, not just in nuclear but across the board. And I think we’ll see massive Japanese investment and Korean investment.” - Ed Davey, British energy and climate change secretary ➋ - Rich Coleman British Columbia's minister of natural gas development "Tepid external demand from advanced economies and a slowdown in China dampened industrial activity throughout much of emerging Asia." ➌ NOVEMBER / DECEMBER 2013 - International Monetary Fund Spokesperson “It’s easy money, and a profitable way to supplement your income." ➏ - Luis Molino, a 35-year-old dentist from Venezuela ISSUE 01 that goes for our energy markets as well. So there is absolutely no reason why Chinese companies can’t enter our markets. I couldn’t be clearer than that,” Ed Davey, British energy and climate change secretary, said in an interview. LONDON. “Britain is the most open economy in the world, and “I think it is really possible we’ll see massive Chinese investment, not just in nuclear but across the board. And I think we’ll see massive Japanese investment and Korean investment.” His comments came amid heated debate over security regarding China General Nuclear Power Group’s talks to share the costs of Electricite de France SA’s planned power station at Hinkley Point in southwest England. The project has an estimated cost of 14 billion pounds (USD $22 billion). “We are delighted to be expanding our business due to strong demand for our super-premium and ultra-premium Irish whiskey brands, which are crafted in the best tradition of 19th century Irish whiskey distilling.” • ➍ Washington. Says the International Monetary Fund, which has cut its growth forecasts for emerging Asia by 0.9 per cent since April for both 2013 and 2014 to 6.3 and 6.5 per cent respectively. - Bernard Walsh, founder of Walsh Whiskey Distillery, Ireland 12 www.investmentlifenews.com Ottawa. “I think we actually have the major players in liquefied natural gas here, there’s at least 10 of them here with significant opportunity to want to make some investment.” Said Rich Coleman British Columbia's minister of natural gas development at a press conference held in mid October. The Minister said that a commitment by a Malaysian national company to build a liquefied natural gas (LNG) plant in B.C. and investment by other countries suggests the province isn't chasing an LNG pipe dream. Royal Oak in C