TICKS eclipses BRICS

TICKS is a grouping acronym that refers to the countries of Taiwan, India, China Korea and South Africa are the new kids on the block of the emerging world.

The economies of China and India are considered to be the largest and Emerging market hedge fund capital reached record level in the first quarter of 2011 of $121 billion. The four largest emerging and developing economies by either nominal or PPP-adjusted GDP are the Ticks countries Taiwan, India, China, Korea and South Africa.

Jim O’Neill, the then chief economist at Goldman Sachs, conjured Brics, Brazil, Russia, India and China failed to power a wave of emerging market-led economic growth for more than a decade.

As recession and corruption in Brazil, Russia have dealt a heavy blow as Goldman closed its Bric fund.

EM fund manager found a suitable replacement in the Ticks with tech-heavy Taiwan and South Korea to join India and China.

Tech is rampant, and the consumer is what you are investing in Ems now. TSMC a Taiwanese chipmaker and Korea Samsung Electronics are the stocks owned by the funds tracked. December 2015, 63 per cent of funds had at least 50 per cent of assets invested in Ticks, while only 10 percent in Brics.

JP Morgan, Swedbank and Nordea have weighting of 35 per cent to Taiwan and South Korea alone in some funds. EM equity fund has equal exposure to China’s finance and IT sector.

 

In many emerging markets the transformation of youngsters adapting to technological changes in areas of ecommerce and online shopping is much faster than in the US.