Bangkok--30 Oct--KAsset
Boosted by purchasing power of the elderly in Europe, bright prospects for the healthcare sector are creating ample investment opportunity. KASIKORN ASSET MANAGEMENT (KAsset) is offering the K European Silver Age Equity Fund (K-EUSAGE) to seek long-term yields from eight major related businesses. Minimum initial investment is 5,000 Baht, while an initial public offering (IPO) is scheduled from November 3 to 9, 2015.
Mr. Navin Intharasombat, KAsset Executive Vice President, said the IPO for the 5-billion-Baht K-EUSAGE is planned for November 3 to 9, 2015. At least 80 percent of its net asset value (NAV) will be invested in the master fund, CPR Silver Age – I Fund, managed by CPR Asset Management, a subsidiary of Amundi Asset Management, which is the largest European asset management firm. The master fund diversifies its investment in eight business segments which benefit from aging consumers' spending power there. These segments are finance and insurance, pharmaceuticals, medical supply and equipment, tourism and hotels, healthcare products, nursing homes, security and automobiles. The key investment strategy is the selection of good-fundamental stocks, while portfolio adjustment in tandem with changing market conditions is also done routinely. Having a mixture of top-down and bottom-up portfolio management, the master fund also pursues an active management strategy to generate higher-than-market earnings, with MSCI Europe (Net Dividends Reinvested) as its reference index. Therefore, K-EUSAGE is an appropriate investment choice for those with a high risk appetite, and confidence in European stocks and fast-growing businesses benefiting from consumption behaviors of the region's senior citizens.
Mr. Navin added that healthcare and Silver Age segments are under the spotlight. Their high growth potential invites long-term investment amid the rising number of elderly worldwide. According to recent data from the World Health Organization, the population older than age 65 is expected to grow from 5 percent of the total populace in 1950 to 17 percent in 2050. Europe, where the senior citizen ratio is the world's highest, is experiencing this situation to a significant extent. Strong buying power of this particular segment has, as a result, increased demand for healthcare products and services and also spurred growth in all related industries; those aged 65 years or older, said the European Commission, could spend up to EUR3 trillion in total. Seeing an opportunity from this big trend, KAsset believes in the growth potential of European stocks gaining from this group of consumers.
On the macroeconomic front, the region's recovery is promising, with the favorable atmosphere of a turnaround in Europe's domestic demand, i.e., improved employment. Other positive factors include recently announced healthier 3Q15 performance of listed companies, led by the consumer products industry, in line with better economic indicators within this economic bloc that should further drive the engine of its business sectors or listed firms. Quantitative easing by the European Central Bank, another crucial development monitored by the market, is likely to contribute to driving the regional economy and restoring investor confidence with, many believe, ECB's additional liquidity injection. Therefore, it is a great opportunity to start investing while European stock prices remain inexpensive, to reap the fruits of economic recovery in the future.
Interested persons may ask for more information and receive the prospectus of K-EUSAGE at any KBank branch, or contact the KAsset Contact Center by calling 0 2673 3888, or visit www.kasikornasset.com.