Bangkok--20 Apr--Asset Plus
Asset Plus launches a new equity fund series “Asset Plus Stars (ASP-STARS)”Invest in world leading brand stocks, IPO from April 19 to 27, 2011
Asset Plus Fund Management launches Asset Plus Stars Fund (ASP-STARS) focusing on investment in world leading brand stocks with two-year investment horizon and gradually taking 5% profit by auto-redemption when NAV per unit hits the target. ASP-STARS will be opened for IPO during April 19-27, 2011.
Mrs. Ladawan Charoen-Rajapark, Managing Director of Asset Plus Fund Management announces the company’s business plan for 2011 by aiming to achieve the asset under management (AUM) target growth from 26.67 billion baht in 2010 to 35 billion baht at the end of 2011 and targeting the net profit growth by 15-20 per cent in 2011, derived from both mutual fund and private fund businesses. Asset Plus focuses on asset allocation strategy to generate a good return to clients by offering innovative and attractive products to suit in each stage of market situations. We also concentrate on product’s benefits based on the appropriate risk appetite of each investor.
However, an increase in inflation is a key factor for investment in 2011 that could pressure the growth of world economy and stock market sentiment directly and indirectly, especially oil-imported Asian countries, such as Thailand. Rising inflation may increase operating costs of listed companies (production cost and interest expense) and also directly affect business growth. In terms of both domestic and foreign investment, Asset Plus focuses on the valuation of securities to select high quality assets in the portfolio. We emphasize on proactive management of the fund with a target return to meet investment objective.
Asset Plus estimates that in 2011, developed markets (such as U.S, Europe, and Japan) are attractive for investors due to the large market capitalization with cheap valuation, coupling with a high growth potential of the multinational companies. Although Japan is now affected by natural disasters, the problem is expected to be in short-term. We expected that Japanese stock market would be rising again in the fourth quarter of this year from the money that Japanese government has injected into the economic system.
"Share prices of large market capitalization companies in the U.S. have been decreased to the level close to share prices in developing countries. Potential business growth of developed market is high. Analysts estimated that there is minimal chance that stock prices of developed markets will decline, especially, in the economic recovery period of U.S." said Mrs. Ladawan
During April 19-27, 2011, Asset Plus offers Asset Plus Stars (ASP-STARS), a foreign flexible fund that will gradually generate returns similar to SMART series fund group, the local nine flexible funds that have been recognized by investors from their outstanding performance. ASP-STARS will be offered only once during the Initial Public Offering (IPO).
ASP-STARS will invest in large market capitalization companies in the U.S., Europe and Japan, about 20 companies, with emphasis on industry leaders and international companies with high business growth level and attractive share prices compared to their fundamental values. The fund is flexible to diversify its asset allocation in both fixed income and equity to generate returns under each economic stage. The fund has an investment horizon for two years and will gradually take five per cent profit by auto-redemption when NAV per unit reaches over 10.50 baht, 11.00 baht, 11.50 baht…. to create cash flow to investors during the investment.
In addition, fund managers manage the foreign exchange rate risk of ASP-STARS by analyzing the exchange rate to suit each investment period.
ASP-STARS fund is unique in terms of stock selection and swift portfolio rebalancing, due to moderate fund size. The fund diversifies investment into both equity and fixed income markets. Besides, it also maintains relatively low fund expenses, in order to generate constant return to investors. ASP-STARS fund is suitable for investors who would like to invest in securities of superior multinational companies and expect good return from two-year investment horizon. Moreover, the fund is appropriately hedged against foreign currency risk. In contrast to other Feeder Funds, ASP-STARS fund is actively managed by our own fund managers. Having experienced in capital market for some times, Asset Plus is famous for in-depth securities analyses, market timing, and investment management of both private funds and mutual funds. Asset Plus also earns recognition for its professional experience worldwide, said Mrs. Ladawan.
Dr. Win Udomrachtavanich, Senior Executive Vice President and Chief Investment Officer, Asset Plus Fund Management adds that in term of securities selection for ASP-STARS, our fund manager team will invest in securities with criteria as follows;
- Global brands with transparent operation and good corporate governance
- Securities that earn benefit from global economic recovery and rising consumption
- Group of businesses with growth potential rate
- Securities that fund manager team can easily access their in-depth information including general, analytical, and financial data
The attractive sectors include Information technology such as Google and Apple, Financial institution which will earn benefit from the expansion of industrial production capacity and the rising interest rates such as JPMorgan Chase & Co and AIA, Multinational companies that receive revenues from business operations internationally and get benefit from global economic recovery and growth of each region such as McDonald’s and Starbucks, as well as Retail such as Tesco that would receive benefit from consumption growth in Asia and emerging markets.
At present, there are many uncertainties affecting investors’ confidence. For example, widespread riots of Middle East and North Africa regions still persist. As a result, long-term investment under fundamental analysis would be better off than the short-term one. Investment horizon of two years would be proper for ASP-STARS fund, in order to reap benefits from recovery period of developed markets. Besides, fund managers can actively manage the fund by selling stocks that the price hits its target and then reinvesting in other undervalued stocks, said Dr. Win.