New Macro Report Highlights Opportunity in Southeast Asia's
Compelling Macro Backdrop
NEW YORK--(BUSINESS WIRE)--
KKR, a leading global investment firm, today announced the release of Indonesia:
Harnessing its Potential, a new macro Insights piece by Henry
H. McVey, KKR's Head of Global Macro and Asset Allocation ("GMAA"),
wherein McVey and his team upgrade their investment outlook for
"Indonesia has one of the most compelling stories that we see across
KKR's global footprint," Henry McVey said. "And unlike in past trips, we
are now confident stating that we think Indonesia is harnessing its
long-term potential into near-term economic and investment realities."
Following a recent trip to the region, Henry McVey outlines several
investment conclusions in his latest report:
Indonesia's macro game plan now seems more in synch with the potential
obstacles the country faces. Perhaps more important, though, is that
central bankers, government officials, and CEOs all now seem more
committed to delivering on the "game plan" needed to elevate Indonesia
into one of the elite destinations for investor capital.
Within our ASEAN footprint, Indonesia has clearly emerged as one of
the most attractive pure-plays on our view that global capital flows
will increasingly migrate towards economies with large domestic
Within the region, we see several industries in transition where
investors should be buyers when prices become more realistic. These
include E-commerce, health services, wellness, entertainment,
nourishment, education, and even consumer financial services.
While absolute rates are low in Indonesia relative to history, local
debt actually still looks compelling.
Consistent with this view on local debt, we are now more sanguine on
emerging market currencies.
Private Credit in Indonesia represents an opportunity, but deal sizes
are still small and sourcing engines will likely be needed to boost
capital deployment in this product area.
Our research on Indonesian Public Equities suggests that we are at an
Similar to what we have seen in other big emerging markets, we believe
that the opportunity for investors to use Private Equity to arbitrage
the Public Equity markets is large and growing.
McVey continues: "To be sure, there are still risks, but our research
and our visits lead us to conclude that Southeast Asia, Indonesia in
particular, may be one of the areas where investors are not fully up to
speed on the compelling macro backdrop. In our view, therein lies the
Links to access this note as well as an archive of Henry McVey's
previous publications follow:
About Henry McVey
Henry H. McVey joined KKR in 2011 and is Head of the Global Macro and
Asset Allocation team. Mr. McVey also serves as Chief Investment Officer
for the Firm's Balance Sheet and is Head of the Private Market and
Balance Sheet Risk team. Prior to joining KKR, Mr. McVey was a managing
director, lead portfolio manager and head of global macro and asset
allocation at Morgan Stanley Investment Management (MSIM). Prior to
that, he was a portfolio manager at Fortress Investment Group and chief
U.S. investment strategist for Morgan Stanley. While at Morgan Stanley,
Mr. McVey was also a member of the asset allocation committee, and the
top ranked asset management and brokerage analyst by Institutional
Investor for four consecutive years before becoming the firm's
strategist. He earned his B.A. from the University of Virginia and an
M.B.A. from the Wharton School of the University of Pennsylvania. Mr.
McVey serves as co-chair of the TEAK Fellowship board of trustees and is
a member of the Pritzker Foundation Investment Committee. He is also a
member of the national advisory board for the Jefferson Scholarship at
the University of Virginia and a member of the Council on Foreign
Relations Corporate Leader Program.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com
and on Twitter @KKR_Co.
The views expressed herein are the personal views of Henry McVey
of KKR and do not necessarily reflect the views of KKR. This
information is not research and should not be treated as research. It
does not represent valuation judgments with respect to any financial
instrument, issuer, security or sector that may be described or
referenced herein and does not represent a formal or official view of
KKR. It is being provided merely to provide a framework to assist in the
implementation of an investor's own analysis and an investor's own views
on the topic discussed herein. There can be no assurance that an
investment strategy will be successful. Historic market
trends are not reliable indicators of actual future market behavior or
future performance of any particular investment which may differ
materially, and should not be relied upon as such. This
information should not be viewed as a current or past recommendation or
a solicitation of an offer to buy or sell any securities or to adopt any
investment strategy. References to a target portfolio and allocations
are hypothetical allocation of assets and not reflect an actual
portfolio. The views expressed herein and discussion of any target
portfolio or allocations may not be reflected in the strategies and
products that KKR offers or invests, including strategies and products
to which Mr. McVey may provide investment advice to or on behalf of KKR.
It should not be assumed that Mr. McVey has made or will make investment
recommendations in the future that are consistent with the views
expressed herein, or use any or all of the techniques or methods of
analysis described herein in managing client or proprietary accounts.
This release may contain projections or other forward‐looking
statements. Neither KKR nor Mr. McVey assumes any duty to update such
View source version on businesswire.com: http://www.businesswire.com/news/home/20170607005235/en/
Kristi Huller or Cara Kleiman
Source: KKR & Co. L.P.
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