Prudential funds to target Vietnam, infrastructure
UK insurer Prudential aims to launch two new Vietnam funds and an Asian infrastructure fund before July, a senior executive with its asset management arm in Asia said Monday.
The Vietnam funds would include one focused on private equity, which the firm hopes will start with at least US$50 million in assets, said Guy Strapp, regional head of investment management in Asia for Prudential Asset Management.
"There's two [Vietnam] funds that we're looking to do. One would be private equity only. And one would be a mix, like the one we launched last year," he said.
The asset management arm of Britain's second-largest listed insurer raised US$282.6 million last year with the November launch of its Vietnam Segregated Portfolio fund. The fund includes a combination of public and private equity, as well as fixed income.
With one of the region's fastest-growing economies, Vietnam has become wildly popular with investors. The country's main stock index rose almost 145 percent last year and is up more than 30 percent since the end of 2006.
A Vietnam-focused fund launched in November by JF Asset Management for Hong Kong investors was fully subscribed on its first day, raising almost US$50 million.
Prudential is also looking to launch a fund investing in infrastructure-related stocks in Asian markets outside of Japan. The fund would use an open-ended structure which would allow it to be sold in a range of markets.
"We don't like doing really any of these funds with less than US$100 million. That doesn't mean you have to have US$100 million at launch. But you want to have expectations of growing to that," he said.
Strapp said that while Vietnam has been a particularly popular theme with retail investors in Japan and South Korea, the firm takes a longer-term view when launching its products.
"When we do these themes we try not to have them so topical that they're in favor today, and out of favor tomorrow," he said.
"When we do something like an infrastructure fund, we do it on that basis that there are very sound macro factors and its a sustainable investment opportunity."
Prudential, which started its funds business in Asia in 1998, now operates in 10 markets in the region.
The Asian fund operation's 29.2 billion in assets at the end of last year made it one of the region's largest fund managers. About 43 percent came from retail investors, with the remainder from institutions and Prudential's own insurance operations.
Strapp said the group is also looking to tap the region's pool of experienced emerging market fund managers by building a small team to run a portfolio of Latin American equities from Singapore. Prudential is also looking at expanding its private equity investment beyond Vietnam.
Source: Reuters
