Cavendish sticks with TIPs despite lull in performance

Thailand, Indonesia and the Philippines (TIPs)have struggled recently but remain a solid investment case, Liz Evans at Cavendish has said.

The group’s investment director said the so-called TIPs countries have strong fundamentals, robust economic growth and attractive valuations – a trend set to continue over the next few years. Evans said: “It is not just about China. Indonesia is forecast to have over 6% growth in GDP this year and next, and the government has already upgraded the 2011 forecast to 6.6%-6.8%.” Demographics are also on side. The population in the TIP countries are large, young and growing, with a propensity to spend rather than save. Under 25s make up 44% of the population in Indonesia, and that figure ...