Active managers recognise that focusing on urbanisation and productivity gains will maximise returns since these trends result in a young and dynamic workforce, new factories, automation and higher wages. It’s not just the relationship with investors that is important to the LGM team, but the partnerships with businesses in the region.
These relationships are established over five or ten years with companies characterised by talented management, a strong brand, a competitive position, and a robust balance sheet.
Potential in the region can be illustrated by the Indonesian banking system. It is one of the most profitable in the world, yet only one quarter of the population currently have access to a bank branch. The potential for growth in this case is clear.