Local investors give Asia Fund thumbs up

"Applications are coming in. The reaction so far has been excellent," he said in an interview yesterday, adding, "As the days go by, we expect interest to grow."

The fund, the latest addition to the range of mutual funds to be operated in Trinidad and Tobago, has a special emphasis on equity portfolio investment in India, and also Asia.

Bourse’ investment advisor is Prudential ICICI Asset Management Company in India, one of the largest international advisory firms in India. It is a joint venture between Prudential PLC group of the United Kingdom and ICICI Bank Limited of India.

With limited equity investment options locally and within the wider Caribbean, Ramkhelawan said Bourse had taken the lead to establish an exciting new investment opportunity for investors which allows them access to India, one of the two emerging giants of the world.

The Savinvest India Asia Fund, which opened last Monday and will close in one week’s time, is a US Dollar denominated mutual fund that offers the investor the opportunity to participate primarily in India and other Asian countries to meet medium to long term investment goals. It is a close-ended, exchange traded mutual fund, said Ramkhelawan. The units in the fund will be issued up to a maximum of 5,000,000 units and will be for a period of five years with an option to extend a further five years or any such longer period. The fund provides liquidity to investors and the units issued will be listed on the Trinidad and Tobago Stock Exchange. The Indian stock market, he said, is the primary investment destination for the Fund.

"India has one of the more sophisticated financial markets. The Indian stock market has outperformed all the Caribbean markets and far exceeded the US, UK and Japan over the past four years on a cumulative basis. With the Indian economy set to grow 6-7 percent and its currency projected to appreciate against the US Dollar, it is indeed a very attractive market," Ramkhelawan explained.

Bourse Securities has been hosting a series of investment seminars and presentations to sensitise various sectors of the investing public about the Fund.

On Prudential, Ramkhelawan said they are a seasoned team of investment professionals who are highly innovative, focused and come with a wealth of knowledge and experience in the Indian capital markets.