In a global product initiative, Mirae Asset Global Investments
] has been approved for trademarking the Great Consumer
name in some of its funds.
The manager of $50 billion in AUM now offers three Great Consumer themed funds as part of its suite of seven Mirae Asset Discovery Funds
. No other asset manager retains the phrase "Great Consumer" in its fund names.
So what does Great Consumer mean? Funds including the Great Consumer name evaluate the collective direct and indirect effects resulting from increased consumption from the middle class in the world's emerging markets, beyond just consumer discretionary and staples, Peter Graham
, president of the Discovery Funds explained to the MFWire
. For example, sectors like healthcare can also be positively impacted by high purchasing power.
Graham added that the middle class in emerging markets globally represent around 960 million people and expected the economic results from this force to be quite significant.
"Based on our conviction in this long term investment trend, we see investment opportunities by companies taking advantage of that," Graham said. "It's a matter of differentiation in recognizing the impact of this trend across many sectors."
"When you think of the straight consumer versus our view of Great Consumer, we wanted to own [the Great Consumer] space and be a leader in recognizing this theme. It's long term and sustainable," he added.
Graham said that Mirae will be "putting a big marketing push behind this concept" going forward and mentioned that the firm will be building its leadership around the Great Consumer theme, though he did not elaborate with specifics.
"As far as where our initiatives are, we've really struck a chord here with investors. It's very compelling," Graham said. "This is where we're spending a lot of our marketing time right now."
Two of the Great Consumer funds were launched almost two years ago, while a third launched in February of this year. The funds were launched in Luxembourg, Korea and the U.S.
Mirae Asset Global Investments (USA) “Great Consumer” Trademark Approved for Publication in USPTO Official Gazette
Awaits Final Step in Trademark Registration
Great Consumer™ Funds Respond to Expanding Purchasing Power of Rising Middle Class in Emerging Markets
New York (September 11, 2012) — Emerging markets expert Mirae Asset Global Investments (USA) today announced that the United States Patent and Trademark Office (“USPTO”) has approved “Great Consumer™” for publication in the USPTO’s Official Gazette and will register the mark later in 2012. Publication in the Official Gazette is the final step before a trademark’s official registration.
Mirae Asset’s proprietary “Great Consumer™” investment theme is at the core of a number of the firm’s investment offerings. The firm defines Great Consumer as the collective direct and indirect economic effect resulting from increased consumption activities and growing purchasing power of individuals within the world's emerging markets. Its Great Consumer™ products respond to the expanding purchasing power of the rising middle class, which is a significant trend in the emerging markets.
The Great Consumer™ funds invest in companies that Mirae Asset believes will benefit from the secular change in consumption patterns taking place in the world's developing economies. In September 2010, the firm introduced this investment theme through two funds, the Emerging Markets Great Consumer Fund(MECGX) and the Asia Great Consumer Fund (MGCEX). A third product, the Global Great Consumer Fund (MGUAX) was introduced in February 2012. These three equity mutual funds are part of the suite of Mirae Asset Discovery Funds, the firm’s first U.S. registered products.
“Our conviction in the Great Consumer™ concept, and the investment products we’ve developed from it, has led us to file the application with the U.S. Patent and Trademark Office,” said Peter Graham, President of the Mirae Asset Discovery Funds. “Our lineup of Great Consumer™ funds provides products for investors to participate in this trend that has the potential to transform the world’s developing economies over the coming decades. We believe this theme will shape emerging markets investing much the same way that the Baby Boom did in the U.S.”
In the U.S., Mirae Asset’s retail product line-up consists of seven equity mutual funds that include the three Great Consumer™ funds. A global bond fund was also launched in March 2012.
The Power of the Great Consumer™
Mirae Asset’s Great Consumer™ investment products are designed to take advantage the potential for accelerated urbanization and economic expansion, as well as unprecedented population and income growth potential led by a younger workforce. We believe these factors will drive consumption across the world’s emerging economies.
As of 2011, these markets already represented about 87% of the world’s population, and a larger and younger working population than in developed markets. In India, Brazil and China, the percentage of population under the age of 25 stood at 50%, 42% and 36%, respectively, in 2010. This compared with 33%, 29% and 22%, respectively, for the United States, United Kingdom and Japan.
The emerging markets’ increase in purchasing power is coupled with dynamic economic growth. The emerging markets’ collective share of global gross domestic product (GDP) continues to rise based on purchasing power parity, and is expected to reach almost 54% by 2016, up from about 49% in 2011. Within the same five-year period, the GDP share for developed markets is expected to shrink to approximately 46% from 51%.
Research conducted by Mirae Asset Global Investments further reveals that there will be about 960 million middle class “Great Consumers” in the emerging markets by 2020. In comparison, the Baby Boomers’ impact on the U.S. economy arose from the purchasing power of 77 million Americans born between 1946 and 1964. Like the Boomer, Mirae Asset believes that the Great Consumer™ consumption patterns will have tremendous growth implications for companies in industries beyond just the consumer staples and discretionary sectors.
The staggering size and purchasing power of the emerging market “Great Consumer™” present a truly significant and long-lasting investable opportunity, a 21st century theme that mirrors that of the Baby Boomer’s, except on an even larger scale. For more details on Mirae Asset’s Great Consumer™, visit www.miraeasset.us/gc
About Mirae Asset Global Investments
Mirae Asset Global Investments is one of the world’s largest investment managers in emerging market equities (source: Investments & Pensions Europe, January 2012). With over 600 employees including more than 130 dedicated investment professionals, Mirae Asset has offices in Australia, Brazil, Canada, China, Hong Kong, India, Indonesia, Korea, Taiwan, the U.K., the United States and Vietnam. Headquartered in Seoul, the firm manages approximately $50 billion in assets globally, of which more than $17 billion is invested in emerging market equities (as of June 30, 2012). Mirae Asset Global Investments (USA) is focused on providing equity and fixed income investment advisory services to mutual funds, foreign investment trusts and institutions. (www.miraeasset.com
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