Bangkok--20 Jul--Aberdeen
Bangkok, 20 July 2010 - Aberdeen is to launch a new fund investing in US large cap companies. The fund, the Aberdeen American Growth Fund (ABAG) is the latest in the company’s FIF range and will bring the number of such funds in the company’s stable to seven.
The timing of the launch underscores Aberdeen’s belief that, while US economic data is still patchy, the country is poised to emerge from its prolonged downturn. The investment manager takes a characteristically long-term view, saying that global investors have tended to shun the US for faster-emerging economies in recent years. Now it is time to review that stance.
In particular, with China now facing a potential property slump amid fears of inflation, the result of rapid credit growth last year, hopes that the economy there will pull Asia and the rest of the world along could may need re-assessing.
Aberdeen points out that US firms are uniquely flexible. Big job cuts have left many lean and ready grow. This is evident from rising corporate profits and record cash balances — factors that have helped rebuild balance sheets and underpin dividend payouts.
It is true that one-off cost cuts may also have boosted company margins. But the closely-followed University of Michigan consumer survey has been on an upward trend this year.
CEOs are also becoming more optimistic.
Part of that is due not just to what is happening in the US but outside it too. The largest US companies are transnational and many of them have been investing in the developing world for years. The best among them have used the opportunity of rivals’ weaknesses to grow their market share at the bottom of the cycle. Their brands are getting stronger.
The stock markets have already signalled their approval. Although volatility has risen lately, the S&P 500 is up 18.05% in the past eighteen months. Yet from a valuation stance the market does not appear expensive, at least not on an historical basis.
Robert Mattson, US equity manager who co-manages the Aberdeen American Equity Fund from the Group’s Philadelphia office, comments:
“We are seeing a gradual upturn in the US. Companies are preparing for growth, not looking to retrench. In fact we think there’s a growing disconnect between what is being reported and what we hear on the ground. While headline industry or sector news may be putting the US in an adverse light — be this the Gulf oil spill, say, or the need for more banking regulation — look a little closer and there are businesses out there which represent excellent long-term value.”
Mr. Chaikaseam Vadhanasiripong, Head of Funds Distribution, Thailand, adds:
"We think the US recovery is gaining pace and there are Thai investors who want dedicated exposure. Our fund vitally differs from others in the market because we are active stock-pickers. The lack of direction in the market at the moment would seem to favour our kind of approach.
Also we believe that the worst point in US economy has most likely passed. From analysing all relative prospects, it is very likely for the US economy to improve, thus providing opportunity for allocating investment into international US companies with solid balance sheet and cash flow as well as those that generate incomes from many regions. These companies include those in IT, Healthcare industry which provides high value product as well as those in the consumer’s product industry with recognised brand"
The IPO period of Aberdeen American Growth fund is starting from 27 July — 9 August 2010. Special promotion during IPO period; receive Central Gift Voucher worth 1,500 baht for investment amount of every THB 1 million and ?Front-end Fee of 1.00% of NAV (after IPO 1.50% of NAV).
About Aberdeen in Thailand
Aberdeen Asset Management Company Limited ("Aberdeen") is part of the "Aberdeen Group" which consists of UK's Aberdeen Asset Management PLC and Aberdeen's main shareholder, Aberdeen Asset Management Asia Limited, which is based in Singapore.
Aberdeen is a full service operation, wholly owned by Aberdeen Asia with full integration into the Group. We provide services to retail and institutional clients by managing the mutual fund, private fund and provident fund. The total asset under management of Foreign invest fund is THB 4.6 billion from the total THB 24.62 billion (as at 31 May 2010).
For further details, please contact:
Jirachaya Laptavornkiat Tel: 0-2352-3387