ING Wholesale Banking is preparing to close a structured Asian fund in Malaysia which the firm believes is a first for the domestic market. Dubbed the ING AsiaPac Capital Guaranteed Fund, it is linked to both local ringgit-denominated bonds and deposits for capital protection and to a Luxembourg-listed call warrant on five Asian markets. The split between the fixed-income investments and warrants will be decided by the fund manager after close.
"In Malaysia, there is a real interest to look outside the local market for diversification," said Edwin Bernard, Asian head of equity derivative product structuring at ING in Singapore, noting while the fund offers overseas exposure, it is based on markets close to home. The fund, with a three-year maturity, will close at the end of next month with a maximum size of MYR300 million (USD82.01 million). It will be sold to retail investors through local banks and insurance agents and is the first of its kind in Malaysia, he explained.
Bernard continued that he expects to launch additional funds in Malaysia in the coming months. "We'll definitely follow this up, given the level of subscriptions we've already received," he noted.
