The Public Far-East Telco & Infrastructure Fund (PFETIF) is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in securities, mainly equities, in the telecommunications, infrastructure and utilities sectors in Far-East markets. PFETIF is attractive to investors who would like to participate in the long-term growth potential of a portfolio of regional stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities.
Given the current global economic uncertainties, investing in regional telecommunications and infrastructure stocks enables investors to participate in the roll-out of infrastructure services to meet the growing needs of the region. Investors will be able to capitalize on the resilient earnings growth prospects of a diversified portfolio of stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities. Asian countries are expected to spend an estimated US$1.8 trillion on construction of roads, railways, power plants, telecommunications and other infrastructure projects over the 5-year period until 2012.
Asian economies need to continue investing in roads, railways, power plants and telecommunications networks to ensure their infrastructure is able to support and sustain their long term economic growth. This will sustain investment spending in infrastructure networks in the region over the medium-to-long term. In addition, infrastructure assets also offer positive long-term prospects as the underlying cash flow of concession companies are usually stable and linked to an inflation index through a negotiated pricing formula.
The presence of growth stocks in the equity portfolio of the fund in particular may result in the fund experiencing significant volatility in times of adverse market movements. The asset allocation, liquidity management, diversification and hedging strategies employed are central to the efforts to manage the risks posed to the fund.
Given the current global economic uncertainties, investing in regional telecommunications and infrastructure stocks enables investors to participate in the roll-out of infrastructure services to meet the growing needs of the region. Investors will be able to capitalize on the resilient earnings growth prospects of a diversified portfolio of stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities. Asian countries are expected to spend an estimated US$1.8 trillion on construction of roads, railways, power plants, telecommunications and other infrastructure projects over the 5-year period until 2012.
Asian economies need to continue investing in roads, railways, power plants and telecommunications networks to ensure their infrastructure is able to support and sustain their long term economic growth. This will sustain investment spending in infrastructure networks in the region over the medium-to-long term. In addition, infrastructure assets also offer positive long-term prospects as the underlying cash flow of concession companies are usually stable and linked to an inflation index through a negotiated pricing formula.
The presence of growth stocks in the equity portfolio of the fund in particular may result in the fund experiencing significant volatility in times of adverse market movements. The asset allocation, liquidity management, diversification and hedging strategies employed are central to the efforts to manage the risks posed to the fund.
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