Equities
Swiss & Global launch offshore 'Chindonesia' fund
Dippy Singh, 10 February 2011
Swiss & Global Asset Management has added to its range of emerging market equity funds with the Julius Baer Chindonesia Fund.
The fund will enable investors to tap into the growth potential of China, India and Indonesia.
The region is home to 40 per cent of the world’s population, around 2.8 billion people, and will add at least 170 million people to its workforce over the next 10 years, according to Swiss & Global.
The actively managed UCITS III fund will identify stocks at an early growth phase with a competitive advantage and will be co-managed by Vincent Lagger and Jian Shi Cortesi.
Cortesi said, 'Chindonesia’s economic activity today already equals 47 per cent of the US economy.
'For the past eight years the countries have been the top three profit generators in Asia.'
He added, 'The twenty-first century may well become the ‘Chindonesia’ century. Indonesia is a leading supplier of energy and soft commodities, leveraging the growth of China and India.
'More importantly, it exhibits positive demographic trends, financial advantages and political stability.
'Compared to many emerging markets, Chindonesia has relatively low public debt and moderate budget deficits. This has helped the countries maintain their superior growth since the financial turmoil.'
Lagger said a minimum of 80 per cent of portfolio assets will be allocated to the Chindonesia universe. The remaining 20 per cent can be invested in companies listed outside Chindonesia, but which generate a majority of their revenues in the three countries.
The Luxembourg-domiciled, US dollar-denominated fund has a maximum annual management fee of 1.4 per cent.
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