The enhanced benefit of diversification
An allocation into Asia Pacific allows investors to add value to their global portfolio through intra-regional growth diversification and also benefit from the variances across economies within the region, states Nuveen Real Estate’s Asia Pacific cities in tomorrow’s world report. A top-down macro perspective of real GDP growth since 1990 suggests the enhanced diversification benefit of adding Asia Pacific into a portfolio that includes the United States and Europe is highly pronounced given growth across Asia Pacific historically being driven by the United States and to a lesser extent Europe. The overriding macro dynamics, however, have evolved substantially during the past three decades.
Asia Pacific is now driving and outpacing world growth. The more attractive secular growth