WITH ALEXANDER MUROMCEW, MANAGING DIRECTOR, EQUITY INVESTMENTS
An important trend in the global markets today is growth of the Chinese and Indian economies and the impact these developing countries are having on the global economy.
Only a few years ago China and India were considered emerging economies, with a role primarily as producers. Today they are increasingly integrated within the global business arena, and as their middle classes grow exponentially, they are creating a new demand for industries in the US and elsewhere.
The scale of these developments is staggering. For example, of China’s total population of one billion it is estimated the middle class component is already 30% - close to the entire population of the US - and is on track to double in the next 10 years. This implies a huge impact on global consumer dynamics. Similarly, on the supply side, the rise of the IT services industry in India over the last few years has made a dramatic change in the Technology sector.
TIAA-CREF’s investment strategy is focused on anticipating this growth and positioning our portfolios to evolve with these developments. Using the same disciplined approach to research and investing that is applied to the developed markets, TIAA-CREF is looking forward at the next 10 to 15 years and preparing for the next wave of growth.
TIAA-CREF’s exposure to the Chinese and Indian markets includes investments in listed equities and fixed income, as well as direct private investment in real estate and infrastructure projects. By providing capital in a well-researched, well-connected way, TIAA-CREF is able to have a positive impact on the development of these economies.
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