ASEAN KEY DESTINATIONS
New fund to focus on China stocks
Tor Indhavivadhana, an executive vice-president, said the ING Thai Greater China Trigger 10 percent fund will invest in the ING (L) Invest Greater China Fund overseen by ING Investment Management.
Investment will be mainly in stocks listed on the China, Hong Kong and Taiwan bourses. "Currency hedging to guard against baht appreciation is the fund's main draw," said Mr. Tor. He said it was expected to deliver a 10 percent return and would be closed or redeemed when its net asset value per unit reaches 11.25 baht, or it could continue to invest in the ING Thai Cash Management money market fund.
The fund is available until May 4 with a minimum investment of 2,000 baht.
Mr. Tor said the three markets each had a different attraction for investors.
China has experienced dramatic development and will see upside gains if the government can tame rising inflation. The market's price-to-earnings ratio (P/E) is 10 times, lower than 13.9 times previously.
Hong Kong's economy is related to China's and benefits from the tourism and property sectors. Last year, the Hong Kong market registered the highest number of initial public offerings. Its P/E ratio stands at 11 times, lower than the past average of 13.7 times.
Last year, Taiwan's economy grew by 10.8%, a 24-year high, supported mainly by activity with China. The Japanese disaster will likely strengthen its position as a major producer of technology products.
The Taiwanese market's P/E ratio stands at 12 times, below the previous level of 14 times.
"We're seeing some promising opportunities for trigger funds in the current environment, especially in volatile emerging markets. Developed markets are interesting as well but are not suitable for long-term investment," Mr. Tor commented.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below