Kuala Lumpur: CIMB-Principal Asset Management Berhad today launched the CIMB-Principal China-India-Indonesia Equity Fund, a fund that capitalises on undervalued listed companies which are domiciled or have significant operations in the growing economies of China, India and Indonesia.
 
Speaking at the launch of the fund, Campbell Tupling, Chief Executive of CIMB-Principal Asset Management said, “This Fund invests into markets that we know best – China, India and Indonesia. These markets are close to home, we hear and read about them everyday, they have proven track records of growing GDP (gross domestic product), strengthening stock markets and corporate earnings.”

As a result of rapid industrialisation and urbanisation, the spending power of the middle income class in these three countries is fuelling the growth of domestic consumption and infrastructure spending. With stimulus packages amounting to more than US$1 trillion and foreign reserves of over US$4 trillion, these markets are attractive investment destinations.

Post-credit crisis, it is essential to invest in markets that will have sustainable growth supported by solid financial systems and strong public and private sector spending. China’s economy is leading the pack with its positive recovery, while India and Indonesia boast large and growing domestic economies that helped them sidestep the global crisis. China and India currently have the biggest industrialisation and urbanisation growth rates in the world, and Indonesia is the largest supplier of key commodities such as palm oil and coal.

 “China, India and Indonesia have just about everything an investor seeks right now. These countries are already generating economic activity equal to 44% of the US economy and by 2015, their GDP are expected to surpass US$10-trillion, even with modest growth rates,” Tupling added.

CIMB-Principal China-India-Indonesia Equity Fund will invest 70% to 98% of its net asset value (NAV) in equity with at least 2% of the Fund’s NAV invested in liquid assets for liquidity purposes. The Fund’s allocation to each of the aforesaid countries will vary depending on the outlook for each country and the Fund’s performance is benchmarked against the Hang Seng China Enterprises Index, S&P CNX Nifty Index and Jakarta Composite Index.

“With a minimum subscription of only RM1,000, retail investors can invest in equities and equity related securities of undervalued listed companies which are domiciled or have significant operations in the China, India and Indonesia markets that offer attractive valuations and medium to long-term growth potentials. I hope investors will take advantage to ride on this opportunity,” added Tupling.

The CIMB-Principal China-India-Indonesia Equity Fund is distributed by CIMB Bank, CIMB Investment – Retail Equities, CIMB Private Banking, CWA (formerly known as CIMB Wealth Advisors), Hong Leong Bank, Royal Bank of Scotland and Phillip Mutual. The Fund has an approved fund size of 600 million units and its initial offer price is RM0.25 per unit.

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