The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
The bank has launched the Credit Suisse PL100 - Emerging Markets Infrastructure Development Trust, which will invest in 20 companies involved in infrastructure in emerging markets.
Infrastructure spending in emerging markets could reach $1 trillion over the next three years, and this will be among the key drivers of growth of companies involved in this industry, says Michael Clapham, head of equities structured products for Credit Suisse in Australia and New Zealand.
ôChina, India, Russia and the Middle East all have significant infrastructure plans underway,ö Clapham notes.
The fund gets its name from an investment universe of 100 listed and publicly traded international companies involved in infrastructure in emerging markets and meet the requirements of the Credit Suisse Holt methodology. That methodology is used to identify stocks that have the potential to outperform the market. It looks at corporate performance and valuation, emphasizing a company's cash-generating ability and overall potential for value creation.
Companies must have a market capitalization of at least $10 billion and a 21-day average daily liquidity of at least $10 million per day to be included in the investment universe. The companies must also derive a minimum of 20% of their revenue from emerging markets.
It is from that investment universe that the fund will pick the top 20 ranked stocks to include in its portfolio. Examples of companies in the initial basket of stocks are ACS Actividades de Construccion of Spain, Arcelor Mittal of The Netherlands, China Netcom Group, China Telecom, China Unicom, and BrazilÆs Cia Energetica De Minas Gerais.
Credit Suisse will provide daily liquidity for the fund. Macquarie Equities is the organizing broker and Commonwealth Bank of Australia and Ord Minnett are lead managers.
The fund will provides investors with capital protection upon maturity, is expected to be listed on the Australian stock exchange on December 19. The fund has a maturity of five years, and will offer investors the potential for semi-annual distributions primarily from dividends received from the basket of securities.
Earlier this year, Credit Suisse launched a similar fund that invested in water companies globally and was also listed on the Australian stock exchange. That fund raised around $113 million before listing.
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