Press Release:
Investing in Asia - New Fund Launch
Tuesday 17 May 2005
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The Tiger roars, but it also bites....How do you invest in Asia, without taking all the usual risks?TIGER Series 1: a fully capital protected fund1 linked to 100%2 of the growth in six Asian sharemarkets: |
"Last century was the American dream, this century is the Asian dream"
A quote from the China Today breakfast seminar held in Auckland on 4 May. The speaker, Jean-Christophe Iseux, is an investment adviser to 14 Chinese local governments and the world's first non-Chinese member of the Chinese parliament.
China and India are rising investment stories and have become the two growth powerhouses of Asia, thanks to a massive industrialisation of their economies. It's difficult for any New Zealander to have missed the increasing price of commodities caused by massive Chinese demand. Oil, steel, concrete, and aluminium have all been shunted northward as they're the first asset class in the food chain. Factories, buildings and whole cities are being built to accommodate the fast pace of change.
Around 20 million3 Chinese are moving from the countryside to the cities every year - that's enough people to fill a city the combined size of Auckland and Wellington every month. In China and India people have rising incomes, which means there's a growing middle class and a massive population who are buying basic goods such as cars, TVs, fridges and entertainment.
This opens up huge opportunities for companies to succeed and become more profitable in Asia. But which companies will be the real winners? Around the world there is talk of trying to cash-in on the developing markets of Asia and their enormous base of consumers. In reality, there are huge cultural differences and a big lack of knowledge.
The most likely companies to succeed could well be the Chinese and Indian companies themselves. They are buying in western expertise and have the know-how to tap into their own growing home market. To top it off, there's the potential to launch themselves globally once they get a better grip on brand and marketing. Other Asian companies are well placed to absorb some of the rub off benefits. Already, many use China as a place to manufacture their exports (a re-export platform).
Asia is not a short term investment story - nor is it going to be a steady ride. Volatility is a well known feature of these markets and is here to stay. There are some very large and powerful investment drivers in the region. With 60%4 of the world's population living in Asia, it's a region which investors will find difficult to ignore over the coming decades.
To take advantage of the Asia opportunity, Liontamer has launched TIGER Series 1, a fully capital protected fund. See full details below.
"For most investors the major reason for not investing in Asia is the volatility. It's our job to take care of the risk and provide the peace of mind of capital protection. That way investors can enjoy the upside, without the bite of the downside" comments Janine Starks, Liontamer's Head of Investment Solutions.
NEW FUND LAUNCH FROM LIONTAMER
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Capital protected Asia fundTIGER Series 1 |
The fund in brief:
| Investment manager | Liontamer |
| Fund name | TIGER Series 1 |
| Term | 5 years |
| Capital protection | Fully protected at maturity (less any entry fee paid)2. Fund buys fully protected investments issued by Barclays Bank PLC (S&P credit rating AA) |
| Growth | Linked to 100%1 of the rise in the Tiger Index. This is a basket of six of Asia's sharemarkets and is overweight China and India (25% China, 25% India, 12.5% into each of Japan, Korea, Singapore and Taiwan) |
| Early maturity | If there is exceptional performance in the first 3 years, it is possible for the fund to close early and pay out a 50% gain |
| Early exit | Capital protection only applies at the end of the 5 year term. It is possible to exit on a quarterly basis, but you could get back less than you put in as well as incurring an exit fee |
| Currency | New Zealand dollars (no currency risk to your capital or returns) |
| Fees | Up to 3% entry fee charged by financial advisers. No annual management fee |
| Closing date | 8 July 2005 |
| To invest | Call your financial adviser or phone us on 0800 210 450 |
www.liontamer.com
Click here for direct links to the following:
Investment Statement
Factsheet (2 page)
Leaflet
For further comment contact:
Janine Starks: Head of Investment Solutions
Phone: 03 384 4283
Mobile: 021 339 040
Fax: 03 384 4285
Email: janine.starks@liontamer.com
Or
Laetitia Peterson: Managing Director
Phone: 09 522 8056
Mobile: 021 625 321
Fax: 09 522 8057
Email: laetitia.peterson@liontamer.com
1 Returns in the final year are averaged monthly
2 Original investment returned at maturity, less any entry fee, plus early bird interest
3 As reported by 'The Standard' China's business newspaper (1 April 2005)
4 Population Reference Bureau (www.prb.org) 2004
