Portfolios will remain the same but be placed under one umbrella for greater security
redit Agricole has transferred three of its stand-alone country funds ' Hong Kong, Korea and Thailand ' into a Luxembourg Sicav, opening up wider distribution policies for the portfolios.
Christopher Johnson, head of UK marketing at Credit Agricole, said: 'The decision to place these funds under the one umbrella was because a lot of country funds have closed over the years, such as Bangladesh and the Philippines. For economic reasons it was more viable to house the three portfolios under the one umbrella.
'It will also make the portfolios be allowed to be marketed in 15 jurisdictions. Previously the funds were only available in Hong Kong.'
The Siam and the Korea funds were both previously domiciled in Belgium. However, the Hong Kong portfolio was already domiciled in Luxembourg but as a stand-alone fund.
There will be no changes made to the portfolios as a result of the move ' they will all continue to be invested using a traditional growth strategy.
Chau Yeeman manages the Hong Kong fund, which invests mostly in Hong Kong-based large caps, with a limited exposure to smaller cap stocks.
The Korean fund, investing on Korean SX-listed stocks, is managed by Fung Kwokan.
Finally, the Siam fund, managed by Reginald Tan, invests in shares listed on the Thailand stock exchange.
Each portfolio is run on a bottom-up basis. The fundamental bottom-up philosophy is achieved through the logical interpretation of analysis of country and industry dynamics, and management quality as well as statistical data.
The process begins with an initial screening of the total investment universe in order to filter out stocks that are illiquid.
Those stocks that meet liquidity requirements of a minimum of $500m market capitalisation and $500,000 daily turnover are placed into the investable universe. Fundamental analysis is performed on these focusing on financial position, growth prospects, industry outlook and quality of management to generate the actively researched universe of approximately 400 stocks. Primary research is then carried out through management contacts and company visits.
Formal stock selections are reviewed each week. Comprehensive financial models are built for each recommended stock.
Each company included in the recommended stock lists will have an assigned weighting and an expressed target price level based on the work of the analysts.
Sector coverage is also included in the research process in order to forecast the effect regional as well as global developments have on Asian companies.
Macroeconomic forecasts are used to determine the allocation between cash and equities and the relative attractiveness of each Asian market.
There are no minimum investments on each fund. A 1.6% annual management charge applies to each.
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