BusinessTimes
THE newly launched CIMB-Principal Asean Equity Fund - which will invest in the region's stocks, exchange traded funds and derivatives - is expected to register an annual return of 10 per cent to 12 per cent, driven by the region's strong growth.
"In less than a decade, the performance of Asean stock market indices has been nothing short of phenomenal; the Jakarta Composite Index rose by 413 per cent from January 1999 to August 2007, Singapore's Straits Times Index rose by 139 per cent while the Stock Exchange of Thailand was up by 123 per cent."
According to the Asian Development Bank, the economies of South-East Asia are projected to reach 5.6 per cent this year and edge upwards to 5.9 per cent in 2008," CIMB-Principal Asset Management Bhd chief investment officer Raymond Tang said after the launch of the CIMB-Principal Asean Equity Fund in Kuala Lumpur yesterday.
The fund, with the initial fund size of RM150 million comprising 300 million units of 50 sen a unit, will invest in stocks of five South-East Asian countries namely Singapore, Malaysia, Thailand, Indonesia and the Philippines.
The firm's head of retail equity Arnold Lim said about 38 per cent of the funds will be invested in Singapore stocks, 18 per cent in Malaysia, 20 per cent in Thailand, 18 per cent in Indonesia and six per cent in the Philippines.
The fund allows investors the opportunity to own stocks of the region's top companies such as Singapore Airlines, DBS Group, United Overseas Bank, OCBC and Telekomunikasi Indonesia.
"The fund is suitable for investors seeking capital growth and diversified investments by accessing multiple stock markets in the region. This is an opportune time to take advantage of Asean's rising economic prospects. We believe this fund will be well-received by Malaysian investors," Tang explained.
Lim added that investors are focusing more in the South-East Asian region now. "Today, investors are mainly focused in China and India. We believe Asean region is coming back in terms of focus, and there are signs that indicate so," Lim said.
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