Insync FM Sees a Better Way into Emerging Markets Through Power Brands such as Nestlé
International equity fund manager, Insync Funds Management, believes that the best way to access the investment returns in expensive emerging market companies is to follow the consumer power brands into these emerging markets.
Investors like the Nestlé Story – reaching consumers in the emerging markets and developed economies are targeting over 40% of their sales coming from the emerging and developing economies.
Which is the best, most cost-efficient way to buy into Nestlé?
“Buying into emerging and developing countries is different from gaining access to their consumer through an international stock. A safer route to the spending power of the emerging market (middle class) consumer is through proven international brands that are in place already in these countries. Also worth noting is that, in the case of Nestlé, its consumer brands appeal to aspiring customers to supposedly superior international brands over their local rivals,” said Monik Kotecha, CIO, Insync Funds Management
Insync FM Sees a Better Way into Emerging Markets Through Power Brands such as Nestlé
International equity fund manager, Insync Funds Management, believes that the best way to access the investment returns in expensive emerging market companies is to follow the consumer power brands into these emerging markets
Investors like the Nestlé Story – reaching consumers in the emerging markets and developed economies are targeting over 40% of their sales coming from the emerging and developing economies.
Which is the best, most cost-efficient way to buy into Nestlé?
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How Best to Buy Into The Nestlé Story?
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Nestlé India is selling on a price/earnings multiple
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37x |
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Nestlé Nigeria is selling on a price/earnings multiple
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32x |
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Nestlé Malaysia is selling on a price/earnings multiple
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24x |
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Nestlé SA (The parent company in Switzerland) is selling on a price/earnings multiple of 15 times and generating significant amounts of free cash. |
15x |
Insync FM
“Buying into emerging and developing countries is different from gaining access to their consumer through an international stock. A safer route to the spending power of the emerging market (middle class) consumer is through proven international brands that are in place already in these countries. Also worth noting is that, in the case of Nestlé, its consumer brands appeal to aspiring customers to supposedly superior international brands over their local rivals,” said Monik Kotecha, CIO, Insync Funds Management
