TheStar
KUALA LUMPUR: CIMB-Principal Asset Management Bhd yesterday launched the CIMB-Principal Asia Infrastructure Fund that aims to invest in fast-growing and high-return Asian companies involved in infrastructure activities.
The fund, which has an approved size of 300 million units at 50 sen each, is a feeder fund that will invest in Invesco Asia Infrastructure Fund.
CIMB-Principal Asset Management chief executive Datuk Noripah Kamso said the feeder fund would use the money raised to invest in Asia’s booming infrastructure needs.
Several hundred billion dollars are expected to be spent on infrastructure throughout Asia, which would result in a sustained strong demand for companies in the Asian infrastructure sector.
Noripah said the long-term duration of infrastructure assets meant it would also be less affected by volatility and investors stood to benefit from Invesco’s track record.
For the past year, the Invesco fund, which invests predominantly in companies in China, India, Hong Kong, South Korea and Australia, had returns of 42%.
“Since infrastructure projects typically run for over 10 years or more, infrastructure companies often demonstrate sustainable and stable earnings growth,” Noripah said.
“The CIMB-Principal Asia Infrastructure Equity Fund, in particular, seeks investments in infrastructure securities that will enjoy a potentially steady, long-term stream.”
The minimum investment in this fund is RM1,000 and the fund’s initial offer period ends on April 14.
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