ASEAN bankers will launch 2nd mutual fund

NUSA DUA, Bali (JP): Bankers of the Association of Southeast Asian Nations (ASEAN) endorsed yesterday a plan to launch its second mutual investment fund, worth about US$150 million, to support the growing business activities in the region.

The secretary-general of the ASEAN Bankers Association, Tay Kah Chye, said that the mutual fund, to be called the Second ASEAN Fund, would be offered to investors in ASEAN, Japan and Europe next year.

"The bankers' association has established a special committee to prepare the issuance of the fund and we hope the investment facility could be launched in July," he told a press briefing at the association's three-day council meeting, which was opened on Thursday.

The meeting is being participated in by some 140 bank executives from ASEAN countries -- Brunei, Indonesia, Malaysia, the Philippines, Thailand and Singapore.

The meeting approved the appointment of Wong Nang Jang, the chairman of Singapore's Association of Banks, as chairman of the association for the 1995-1997 term.

Tay said that the second mutual fund, which is to be listed on one of the stock markets of the ASEAN countries, would be used to buy stocks or bonds listed on the region's stock exchanges, as well as securing equity participation in non-listed companies.

The association launched its first mutual fund in 1987, through the Singapore-based ASEAN Finance Corp., a merchant bank jointly owned by the association's members, to support businesses in the region.

He said that the first mutual fund, which has invested in stock markets and made direct investments in non-listed companies in ASEAN's member countries, had booked significant gains.

The assets of the investment facility have nearly doubled from their original value of $150 million, he said. (hen)