BusinessTimes
AVENUE Invest Bhd, a member of the ECM Libra Group, has launched its latest fund, the Avenue Trident Capital Protected Fund (ATCPF).
It is is a two-year close-ended thematic growth fund which will seek to provide 100 per cent capital protection.
ATCPF is specifically designed for investors who seek capital preservation while earning potentially better returns than bank deposit rates.
The fund invests in key emerging market economies through the S&P BRIC (Brazil, Russia, India and China) 40 Index and large-scale investments in infrastructure among emerging economies via the Credit Suisse Emerging Markets Infrastructure Index.
It also invests in the rise in global demand for agricultural products through the S&P GSCI (Goldman Sachs Composite Index) Agriculture Index.
Managing director Tan Jin Teik said the Bric economies are the new engines of the world's economy.
"Their combined population represents a huge labour and consumer potential," he said in a statement, adding that these countries have large reserves of natural resources.
Emerging markets have also been growing at a rapid pace and this is expected to persist, with massive investment in infrastructure such as roads, airports, bridges, railways, power stations, power lines and communication networks, he said.
"As for agricultural products, demand has exceeded supplies and resulted in the rise of food prices. Food supplies will face limitations due to rising environmental concerns, urbanisation and land degradation," said Tan.
He added that the launching of the fund is timely "as the asset classes the fund will invest in have corrected from their highs, but still offer excellent long-term prospects".
The fund's capital protected value is derived from investing in ringgit-denominated zero-coupon negotiable instruments of deposits that will return 100 per cent of the invested capital to unitholders at end of the two-year period.
The fund has a size of 200 million units, to be sold at an offer price of 50 sen per unit during the 45-day offer period from yesterday.
Units will only be sold during the offer period with a minimum initial investment amount of RM5,000.
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