LA-based fund acquires 5.15% of Mla Water

MANILA, Philippines - Los Angeles-based open-ended equity fund SmallCap World Fund has accumulated 103.69 million shares or 5.15 percent of Ayala-led utility firm Manila Water Co.

In a beneficial ownership report filed with the Philippine Stock Exchange, SmallCap said it purchased 4.5 million shares of Manila Water on Nov. 27 at an average price of P32.0179 per share, resulting in the fund’s shareholding to cross above the five percent threshold.

SmallCap primarily invests in growth stocks of small-cap companies with market capitalization of $3.5 billion or less in the United States and throughout the world.

As of Nov. 5, 2012, the fund had $19.66 billion worth of assets.

The fund holds more than 500 stocks in a broad range of sectors, and it also has a higher-than-average weighting in emerging markets compared with other world-stock funds.

SmallCap has returned 13.05 percent over the past year and 10.91 percent over the past three years.

Manila Water provides water and wastewater services to the following areas: Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City, San Andres and Sta. Ana in Manila, as well as several towns of Rizal province which include San Mateo, Rodriguez, Antipolo, Cainta, Angono, Baras, Binangonan and Jalajala.

The company, through subsidiaries, has projects in Laguna, Pampanga, Boracay and Cebu. It also has a presence in Vietnam.

Manila Water, recognized as among the world’s best operators in water efficiency, has been expanding its presence in Asia.  It recently acquired a majority stake in Jakarta’s water supply concessionaire, PT PAM Lyonnaise Jaya (Palyja).

Palyja has been operating the water supply concession contract of Western Jakarta since 1997 under a 25-year deal with the government-owned PAM Jaya.

PAM Jaya has a total water supply of more than 700 million liters (185 gallons) a day and 5,300 kilometers of pipe network.