CIMB Thai announces collaboration with Mirae Asset Global Investments, South Korea’s No. 1 asset manager
CIMB Thai announces collaboration with Mirae Asset Global Investments, South Korea’s No. 1 asset manager, on new actively managed Korea Equity Fund for Thais’ investment in Korean equities where high return is expected from over 18% upside amidst strong revival in global economic growth.
Mr. Subhak Siwaraksa, President and Chief Executive Officer, CIMB Thai Bank Plc. announced today that CIMB Thai Bank and CIMB-Principal Asset Management have signed a memorandum of understanding with Mirae Asset Global Investments, South Korea’s first-largest asset management company. This regional collaboration will benefit both parties through the joint activities on research, financial product development, market expansion, and new business opportunities in Thailand and South Korea. It is the first-ever business expansion to Thailand of Mirae Asset Global investments, a leading Korean asset manager, through business partnership with CIMB Thai.
“Initially, the regional collaboration begins by launching an equity fund for Thais to have the opportunity to invest in South Korean equities through a fund managed by South Korea’s No. 1 asset manager. South Korean equity market has high growth potential this year, due to the expectedly upward trend of the country’s economy and the growth of exports as benefited from recovering global economy,” said Mr. Subhak.
Mr. Kim, Mi Seob, Senior Managing Director, Head of Global Business Unit, Mirae Asset Global Investments said, “Both CIMB and Mirae Asset Financial Groups share a pioneering spirit which has resulted in each group to lead the finance industry of their respective regions in Asia. As the two groups enter into partnership, what we witness today is not only a big step for CIMB and Mirae Asset, but a magnificent cooperative development for Thai and Korean finance. I am humbled to be a part of this historical occasion, and I would like to assure you that Mirae Asset Global Investments will do whatever we can in order to provide successful and fruitful progress between the two financial groups.” said Mr. Mie Seo
Apart from MOU signing ceremony, CIMB-Principal Asset Management and Mirae Asset Global investments has been jointly agreed to launch CPAM Korea Equity Strategic Fund (CPAM KEQ) the first active management fund focuses to invest in Korea’s high potential growth blue-chip equities. The fund is aimed to fully invest in the investment units of the Mirae Asset Korea Equity Fund (Master Fund) managed by fund managers from Mirae Asset Global investment located in South Korea. The master fund is rated as 4 stars award by MorningStar with strong tracking record, has been so far delivered the return since the launch date (2008) until now (as of Jan 2014) as of 60.1%, its performance is far greater than average return of South Korea’s equity index (KOSPI) as of 45.0%.
Mr. Jumpon Saimala, Chief Executive Officer, CIMB-Principal Asset Management Thailand said that South Korea is a promising investment destination for Thai investors. South Korea is a world-leader of technological innovation country with many global competitive companies that are proven by no. 1 world market share for Mobile phones, semi conductors and LCD display devices through many global magnetic brand icons such as SAMSUNG, LG and HYUNDAI.
CIMB-Principal has seen the good opportunity at the right timing to invest in Korea equities due to country‘s high foreign exchange reserves and strong consumption index as government has targeted to increase country’s GDP growth to 4% by 2017. Likewise, the stock market has performed relatively well with attractive valuations by being lower than other peer markets in Asia-Pacific region. Given the consensus from many well-known research companies, South Korea‘s stock market index 2014 forecasted average return is approximately 18% (Bloomberg consensus). Key economic positive drivers are competitive global-leading technological innovation, positive export growth driven by world economic recovery, government’s three-year economic innovation plan to boost public consumption, increase in private sector investment and to sustain increases the country’s GDP level.
Mr. Park, Ryan Head of Korea Equity Research Division Mirae Asset Global Investments added that, “Whilst the rapidly growing consumption in the Asia Pacific region is changing the dynamics of global economics, Korea, thanks to its geographic proximity to the region and competitive products and services, is one of the key benefactors of Asia’s consumption boom. As Korean companies are increasingly competitive on the global stage and many continue to show stable earnings growth, we believe select Korean companies present some of the most attractive equity investments available today. Also, as witnessed by recent events, although Korea is classified as an emerging market, the country is far less rattled by external turbulence or impacts as its economy is very well diversified in terms of sectors and industries.” Added by Mr. Ryan
Mr. Jumpon further mentioned that in order to maximize the benefits of investors in the fund, the key highlight of this fund is that given within the first 12 months (1 year) of launching the fund, the fund is designed to provide two times payment via auto-redemption of units -the first time auto-redemption is if the NAV price is equivalent or above 10.50** Baht per unit on any business day, company will process the automatic redemption of units valued at 0.50 Baht within 5 business days after the initial strike date. The second time is if the NAV price is equivalent or above to 11.00** Baht per unit on any business day, also the company will again process the second automatic redemption of unit valued of 0.50 Baht within 5 business days after the strike date. Both auto redemption payments will be converted into units of CIMB-PRINCIPAL Treasury fund equal to the auto redemption amount.
After both payments have been triggered, the fund will be automatically be converted into an open ended fund with allows daily transaction for wealth accumulation under the name ‘CPAM Korea Equity fund’. Otherwise, if the fund has not been reached the investment target within a year period, the fund will be also converted to be open ended fund, which allows daily subscriptions/ redemptions as well.
CPAM Korea Equity Strategic Fund’s IPO period is from 1 to 8 April 2014. The minimum subscription amount is set at 5,000 THB. The Fund has the policy to fully invest in the investment units of the Mirae Asset Korea Equity Fund. The Master Fund has investment policy to invest in blue-chip companies as well as diversified industry sectors such as SAMSUNG ELECTRONICS, SK TELECOM, and HYUNDAI MOTOR, as it can be seen so far the fund has been delivered the good return and it is expected again this time to be delivered return per fund’s investment target.
For more information on the “CPAM Korea Equity Strategic Fund (CPAM KEQ)”, The investors can make inquiry for more information and acquire prospectus, project, and obligations from the Management Company, and sale and redemption supporters as the following details: 1) Website:
www.cimb-principal.com; 2) CIMB-Principal Asset Management Co., Ltd.: 0-2686-9500 or 0-2686-9595; 3) Sale agents of investment units appointed by the Management Company
Investment in investment units are not money deposit and not under the protection of Depository Protection Agency. Therefore, the investors shall carry risks from investment which the investors may not acquire full amount of investment money in return.
** The auto redemption rate is only set as a trigger point for fund liquidation condition. It is not an estimate or a guarantee of the fund return. The return is before expense actually incurred (if any).
