Big S'pore bank to launch Asia Infrastructure Fund
Big S'pore bank to launch Asia Infrastructure Fund
SINGAPORE (AFP): One of Singapore's biggest banking groups has set up a fund that will invest in Asian companies involved in the region's burgeoning infrastructure business, company officials said.
The Savers Asia Infrastructure Fund is to be launched today by OCBC Asset Management Ltd., a wholly-owned subsidiary of the Oversea-Chinese Banking Corp., one of the city-state's "big four" banks.
"Governments in Asia will increasingly be privatizing such infrastructure projects to benefit from significant efficiency gains. Securities of such privatized companies will thus be able to offer investors good long-term growth potential," a statement said.
The World Bank has estimated that the fast-growing economies of Asia will spend up to US$1.5 trillion over the next decade to meet demand for more electricity, roads, bridges, ports, piers, drinking water and sanitation.
The infrastructure fund, an open-ended unit trust, is aimed at medium- and long-term capital appreciation from investments in listed securities of Asian companies involved in utilities, telecommunications, transportation, construction, engineering and other related areas.
It will initially invest in China, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand, an OCBC statement said.
The minimum initial purchase for investors in the fund was placed at S$10,000 ($7,142) at an offer price of S$1 per unit.
Elena Chong, assistant vice president for marketing of OCBC Asset Management, told AFP that the fund was expected to raise about $14 million in its first three months.
The priority countries for investment are led by China, Hong Kong and Indonesia, while the priority sectors are by power, telecommunications and transportation, she said.
Some of the stocks which could be initially bought by the fund are Hutchison Whampoa in Hong Kong, Singapore Telecommunications Ltd., Telekom Malaysia Bhd, and Van der Horst Ltd in Singapore, she said.
It will be the second investment fund aimed at infrastructure- related firms to be launched in Singapore. Citibank NA has a similar fund.