Staggering increase in consumer demand for products and domestic
consumption in Asia is driving worldwide inflation: Investments must keep
pace; investors should keep a hand in global real estate and resources,
- MEDIA CONFERENCE CALL TUESDAY, DECEMBER 11, 2007 -
TORONTO, Dec. 11 /CNW/ -
As 2008 approaches, Guardian Group of Funds (GGOF) and its leading
international fund managers will provide their analysis on what investors can
expect in the New Year, including commentary on the value of real estate
investments as a hedge against projected rising inflation.
According to GGOF, the bulk of inflationary pressure is emanating from
Asia, where the shift of more than 300 million people into the middle class
has been creating a domino effect of unprecedented demand for raw materials
and commodities. Resources, such as oil, gas and base metals are not only
needed to satisfy consumer appetites for TVs, cell phones and cars, but to
build the infrastructure of an increasingly consumer-driven society. As global
demand for goods and services rises, so too does inflation.
The numbers speak for themselves:
- Per capita GDP in China has risen from less than US$500 in 1980 to
over US$5,000 in 2005.
- In the last 10 years in China, the number of cell phones has grown
10-fold (to 450 million); Internet users have grown from almost none
to 135 million users; credit cards in circulation have grown by
125 per cent and consumer loans have gone from zero to a
US$330 billion industry.
The staggering increase in consumer demand for products and domestic
consumption requires a parallel increase in raw materials. All of this is
driving inflation and investments must keep pace. In Canada, $1,000 in 1980
would be worth only $380 in 2006.
A much overlooked, but historical hedge against rising inflation is real
estate. Typically considered a 'local' or 'residential' investment, there are
many opportunities for investors to participate in the global real estate
market. For example, over the last 20 years, REIT share prices have more than
kept pace with the Consumer Price Index (CPI), a traditional measure of
inflation, thus protecting an investor's capital from the rising cost of
living. Nevertheless, with the demand from Asia for raw materials, gas and
base metals to remain at record highs, investors would be wise to keep a hand
in real estate and resources in 2008.
Ross Kappele, President, GGOF
Mr. Kappele will host the call
Gavin Graham, Chief Investment Officer, GGOF
Mr. Graham will speak to the global real estate market
David Harding, Managing Director, Matthews
(GGOF Asian Growth and Income Fund)
Mr. Harding will speak to Asian markets
Wally Kusters, Managing Director, Barrantagh Investment Management
(GGOF Small Cap Growth & Income Fund; GGOF Resource Fund)
Mr. Kusters will speak to the global demand for resources
Tuesday, December 11, 2007
11:00 a.m. Eastern Time
Call-in number: 416-641-6121 or 866-542-4241
A print transcript of the conference call will be available upon request.
For further information:
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