CIMB Principal believes that the strongest recovery market in 2014 is Japanese Equities with a potential upside of more than 10%
First IPO of the year with CIMB-Principal Japanese Equity Fund from 3 -11 February 2014 investing in Blue Chip Japanese companies with excellent fundamentals and upside potential 2013 master fund (Principal Global Investors Japanese Equity Fund) performance had an annualized return of more than 53%
CIMB Principal announced today that it will be offering potential investors an opportunity to invest in Japanese Equities and the Japanese market through the initial public offering (IPO) of the CIMB-Principal Japanese Equity Fund from 3 to 11 February 2014 with a registered find size of THB 1,500 million. The fund is an opened end fund with will provide investors with direct access to invest in large and mid cap Japanese Equities with good fundamentals and upside potential.
“Japanese equity markets have performed relatively well among other developed equity markets in 2013 particularly due to Abenomics policies of further relaxing and expanding monetary polices, increasing fiscal stimulus coupled with better outlook and recovery of the global economy in 2014 which will clearly benefit Japanese companies and the economy in the longer term” Mr.Jumpon Saimala, Chief Executive Officer of CIMB Principal Asset Management Thailand said.
Mr.Jumpon also further mentioned that, the fund will invest in Large and Mid cap Japanese equities that would reap the benefits from Abenomics and recovery in the US and Europe such as Toyota Motor Corp., Sumitomo Mitsui Financial Group.Inc, Mitsubishi UFJ Financial Group, Inc. Softbank Corp., Mizuho Financial Group, Inc. The feeder fund (Principal Global Investors Japanese Equity Fund) will be professionally and actively managed by Principal Global Investors (PGI) portfolio mangers with direct experience in managing Japanese equities for over 20 years and also offices in Tokyo, Japan. He further added that the past performance of the master fund has done relatively well which an annualized return of 53.44% in 2013 outperforming the funds benchmark MSCI Japan Equities (51.86%) by 1.58%
CIMB Principal believes that there is a strong indication that the Japanese economy is showing clear signs of a recovery towards sustainable growth in the longer term as a result of Abenomics and a more favorable Global Economic Climate. The yen has weakened significantly against the US dollar which is positive for exports, Unemployment is down and inflation is up indicating a recovery in domestic consumption and property prices are edging up as we see strong signals of an apparent recovery in demand and investment in major cities in Japan. In addition, Japanese equities are under owned by global portfolio managers in the past 20 years and as a result have been potentially seen to increase allocation this year. “After more than 20 years of lackluster and anemic growth, we believe that the recovery in Japan this time is real and exciting” Mr.Jumpon said.
Ask on how further the Nikkei Index would rise this year, Mr.Jumpon further commented that the general consensus of Analysts surveyed in Bloomberg is that the index at the end of the year would rise to roughly 18,000 ppts. (which a high estimate of 19,000 ppts.) and implying an upside of 12%-18% from current levels (Source: Bloomberg, January 8, 2014). Thus this would provide investors with an opportunity to reap the potential benefits of investing the one of the strongest developed market economies recovery story of the decade which we believe have real potential upside for 2014.
The initial public offering (IPO) of the CIMB-Principal Japanese Equity Fund from 3 to 11 February 2014 with a registered find size of THB 1,500 million, minimum investment in the fund will be THB 5,000. For further details, or to obtain a prospectus contact any CIMB Bank Thai branches and Selling Agents or CIMB Principal Asset Management Tel. 02-686-9595 or
www.cimb-principal.co.th