What is Turkey, Indonesia, Mexico, Philippines (TIMP)

TIMP stands for Turkey, Indonesia, Mexico and Philippines. Similar to BRIC, for Brazil, Russia, India and China, the acronym groups emerging market economies in similar states of economic development.

BREAKING DOWN Turkey, Indonesia, Mexico, Philippines (TIMP)

TIMP was coined by Bob Turner, the chief investment officer of Turner Investment Partners, a Berwyn, Pennsylvania asset management firm. He noted that these countries possess qualities that should keep them and their stock markets expanding rapidly and profitably. Further, TIMP nations have good growth prospects due to favorable demographics, political stability, liquid stock markets, well-established legal and financial systems, and diverse industrial bases. Proximity to large economies, such as the United States, the Eurozone and China, is also a factor. He also said that each TIMP country has an idiosyncratic feature that adds to its appeal. He highlighted Turkey’s location, which allows it to bridge Asia and Europe along one axis and Russia and the Arab world along the other. Mexico has had manufacturing strength, Indonesia a rapidly growing middle class, and the Philippines a booming call center industry.

Small investors may be better off gaining exposure to TIMP through funds rather than individual stocks because the markets are small and not that liquid. For such investors, there are exchange-traded funds (ETFs) that focus on the TIMPs. However, several TIMP stocks do have American depositary receipts (ADRs), which are shares denominated in dollars and traded on U.S. markets that may be attractive to less risk-averse investors. Emerging countries carry sovereign risk, such as if a new leader emerges that does not favor capitalism. Also, any global slowdown has a greater impact on emerging countries than developed ones.

Other country acronyms

To understand emerging markets, analysts​​​​​​​ and investors have grouped countries together. Shared characteristics, rather than shared geographies, have been used to match different economies, with variable success as markets evolve.

  • MIST: Mexico, Indonesia, South Korea, Turkey; next tier after BRICs
  • MINT: Mexico, Indonesia, Nigeria, Turkey
  • Next 11: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, Vietnam; have the potential to become large economies this century
  • Fragile Five/BIITS: India, Turkey, South Africa, runlarge current account deficits
  • EAGLEs - Emerging and Growth Leading Economies: Brazil, China, Egypt, India, Indonesia, South Korea, Mexico, Russia, Taiwan, and Turkey; all may be updated
  • PIIGS: Portugal, Italy, Ireland, Greece, Spain; weak and indebted during bloc crisis
  • CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa ; growth drivers
  • SANE: South Africa, Algeria, Nigeria; likely African growth countries
  • STUCK: South Africa, Turkey, Ukraine, Colombia, UK; large current account debt