SINGAPORE, Feb 10: DBS Asset Management (DBSAM) said on Tuesday it was launching an equity fund which would invest in small and medium-sized companies around the world.DBSAM, a subsidiary of DBS Bank, would co-manage the fund with US-based Cowen Asset Management.
Called the Shenton Global Advantage Fund, it was looking to raise Singapore $20 million in the first month, DBSAM executive director Ronnie Teo told reporters."By the end of the first year, we're looking at S$50million," Teo said.
About 20 per cent would be invested in Asia, 50 per cent in North America and 30 per cent in Europe initially, said DBSAM chief investment officer Cheong Kum Hong.
It would invest in companies with a market capitalisation of not more than $500 million, DBSAM officials said.
Cheong said that over a five-year period, Cowen had achieved returns of 19 per cent with its own small capitalised stock fund, which was launched in 1986.This outpaced the performance of the Morgan Stanley Capital International (MSCI) globalsmall capitalised stock index, which rose 11.2 per cent in the five year-period. "An 11 to 15 per cent return is something we would like to see," Cheong said on the expected performance of DBSAM's new fund. Cowen manages total assets of about $5.7 billion, of which about $1.2 billion is in small stocks, Cowen managing director Kenneth Dowd said.
Dowd said he was particularly upbeat on the health care and energy sectors. DBSAM officials said its new open-ended unit trust was a good way for investors to diversify, especially during the financial turmoil in Asia.
With Cowen's investment expertise in small capitalised stocks, the fund would be able to identify the correct time to enter markets for such stocks, they said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
