$100m raised for ASEAN investment

$100m raised for ASEAN investment

SINGAPORE (AFP): An ASEAN regional investment fund to be
listed this month in Singapore and Osaka has raised US$100
million, its lead managers and participating regional banks
announced here yesterday.

The ASEAN Supreme Fund Ltd. is aimed largely at investing in
equity markets in the seven-member Association of Southeast Asian
Nations, which groups Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam.

The fund, the second of its kind, is supported by the ASEAN
Bankers Association, which will subscribe to half of the 10
million redeemable preference shares in the fund, offered at $10
each.

The remainder will be publicly offered by Nomura Securities
Co. Ltd. in Japan, and privately placed outside Japan by Nomura
Singapore Ltd.

"The investment objective of the fund is to achieve long-term
capital appreciation in equity and equity-related securities of
companies in the ASEAN countries," said a statement from Nomura
and the ASEAN bankers' group.

At least 80 percent of the fund's portfolio will be in listed
securities.

"The fund will provide another opportunity for the investors
to place their confidence in the continuing and robust economic
growth of the ASEAN countries," said Wong Nang Jang, chairman of
the ASEAN Banking Council and director of the fund.

The new regional fund comes eight years after the ASEAN Fund
Ltd., which raised $150 million, was launched listed on the Stock
Exchange of Singapore (SES).

"The fund has consistently performed very well and its net
asset value has more than doubled in recent years," the press
statement said.

The SES has approved in principle the new fund's listing, and
an application has been made with the Osaka Securities Exchange.
The offer closes on September 18 and the fund is due to be listed
on the two exchanges on Sept. 24.

Officials said the fund would be closed-ended for 10 years,
after which it may be converted to open-ended status depending on
shareholders' approval.