Royal Fidelity launches new international investment fund
Royal Fidelity has grown its international investment product catalog once again. Its new offering will give Bahamian investors a chance to take advantage of expansion in the world’s fastest growing economies.
The bank launched another emerging market-linked fund called Total Index-Linked Global Returns Securities 4 (TIGRS 4). President of Royal Fidelity Michael Anderson said in addition to allowing Bahamians to engage in the international investment market, it provides other key benefits.
“This is the fourth TIGRS fund that we’ve launched here, and it represents a significant opportunity for Bahamian investors,” Anderson said. “They can now use Bahamian dollars to get 100 percent of the potential upside of an equity investment in the world’s fastest growing markets, while knowing that as a result of the principal protection feature, they will not lose any of the money they invest.”
The fund is structured to provide 60 percent equity exposure to emerging market economies such as China, Brazil, Taiwan, Korea and Singapore, balancing this weighting with a 20 percent exposure to each of the S&P 500 U.S. index and the Morgan Stanley Capital International (MSCI) European, Australasian and Far East (EAFE) indexes.
“The prospects for growth within emerging market countries relative to developed markets is compelling,”said Royal Fidelity Fund Manager Joseph Euteneuer.” China–with 1.3 billion citizens–represents the most dynamic picture of the forces behind the growth. Analysts estimate that nearly 1 million people per week are either being born into or moving into China’s cities, requiring the Chinese government to spend massive sums on infrastructure such as housing, electricity infrastructure and roads.
“Companies that can meet this enormous demand stand to benefit significantly.”
Royal Fidelity launched another TIGRS fund earlier this year, and they added the TIGRS 3 Sub Fund in July. This fund offered full principal protection and participation in the upward price performance on an equally weighted basket of commodities composed of gold, copper and nickel.
The five-year closed-end fund TIGRS 4 opens today and closes December 10, with a$5 million total issue. More information regarding the fund can be found on the company’s Web site, www.royalfidelity.com.