Rothschild's trust eyes Indonesian bonds<\/p>\n
SINGAPORE (AFP): The Rothschild group, which launched its
\nAsian bond trust in Singapore yesterday, is targeting Indonesia
\nand the Philippines as preferred markets for investments,
\nofficials said.<\/p>\n
The factors are the Philippines' positive credit outlook and
\nits proposed corporate tax reforms, while Indonesia is one of the
\n\"most progressive countries in the region\", said Julia Ho, senior
\nfixed income and currency fund manager of Rothschild Assest
\nManagement (Singapore) Ltd.<\/p>\n
\"I am very optimistic about the credit outlook there (in the
\nPhilippines), \" Ho said at a news conference after the launch of
\nRothschild's first open-ended unit trust to invest in Asian
\nbonds.<\/p>\n
Manila's tax reforms would provide a \"very good source of
\nrecurring income\" for the government and improve the savings-
\ninvestment gap which had been a cause of worry in the past, Ho
\nsaid.<\/p>\n
Ho also said Indonesia was one of the better performing
\nmarkets but \"still the yields there are very high, very
\nattractive\" mainly because investors are assigning too high a
\nrisk premium due to political risks.<\/p>\n
\"Indonesia has come a long way. It is one of the most
\nprogressive countries in the region with the deregulation of the
\neconomy\" and the growing middle-class, she said.<\/p>\n
Generally, the Asian bond markets are relatively under
\nresearched, but they offer higher yields than other international
\nbonds, Ho said.<\/p>\n
She added \"so far the bonds haven't been given an investment
\ngrade by rating agencies because the track records of the
\ncompanies have been very short.\"<\/p>\n
\"Rating agencies tend to be conservative, but as the
\nfundamentals of companies operating in Asia improve, these will
\nbecome investment grade in the future.\"<\/p>\n
Under the Singapore-dollar denominated Five Arrows Asian Bond
\nTrust fund launched Wednesday, the trust will invest mainly in
\nAsian bonds issued by the governments and corporations. The trust
\nis managed by Rothschild Asset Management (S) Ltd.<\/p>\n
Minimum initial investment for the trust is S$5,000 (US$3,570)
\nand subsequent investments will be in multiples of S$1,000. The
\nlaunch price is set at S$1.00 per unit and the offer will close
\non Dec 20.<\/p>\n
The trust is denominated in Singapore dollars and non-
\nSingapore dollar currency exposure will be limited to under 30
\npercent of the portfolio.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rothschilds-trust-eyes-indonesian-bonds-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}