ATR KimEng launches new Asian equity fund

MANILA, Philippines - ATR KimEng Asset Management Inc. (ATR AM) formally launched the AsiaPlus Recovery Fund, a mutual fund that seeks capital growth by investing in a diversified portfolio consisting mainly of listed stocks in the Asian region.

According to Mike Ferrer, managing director of ATR AM, the AsiaPlus Recovery Fund will allow local investors to diversify into Asian stocks and to participate in the growth stories of our regional neighbors.

“Asian equities provide a compelling diversification option for investors, because they present opportunities for strong returns with less volatility or risk. The region (excluding Japan) is expected to lead the global economic recovery, which we think is still in its infancy. Asian economies are poised to grow by about percent this year and Asian corporate earnings are expected to rise 27 percent,” Ferrer explained.

“It should be noted, however, that we are not limited to investing in the Asian region. We may also invest in equity markets outside of Asia, hence, the fund’s name AsiaPlus,” added Julian Tarrobago, vice president and fund manager for international equities of ATR AM.

For the first time, Filipino investors can now have access to Asian and international stocks through a local mutual fund which is registered with the Securities and Exchange Commission. ATR AM believes that this is a good time to invest in Asia.

“The fundamental story is strong, fuelled by a combination of stronger domestic economies, low interest rates, acceptable inflation, favorable corporate earnings prospects, strong balance sheets and inexpensive valuations. There is no structural debt concern in Asia (ex-Japan) and the risk of significant and immediate monetary tightening appears minimal,” explained Tarrobago.

To achieve the investment objective, the fund manager will invest approximately 50 percent to 90 percent of the portfolio in offshore domiciled equity funds and 0% to 40% in individual equity securities listed in other countries.

The fund will be invested in offshore Asian equity funds managed by well-known global and regional fund managers as well as boutique and specialist managers..

“We will be using what we call a multi-manager approach. A multi-manager approach provides access to expertise of the best fund managers from all over the world, allowing the fund to invest in the “best of breed”. A fund of funds has multiple levels of diversification, i.e. in terms of investment style, asset class, market capitalization and geography,” Tarrobago said.

The AsiaPlus Recovery Fund is ideal for investors who are looking to diversify out of the Philippines. The Fund is suited for investors pursuing a growth strategy and who have a medium to long term investment horizon.