Thursday, January 18, 2018

Stock Exchange okays new US$ Bourse Brazil Latin Mutual Fund

The Bourse Brazil Latin Mutual Fund is the first listing on the T&T Stock Exchange’s (TTSE) new US-dollar mutual fund platform. 

In a release yesterday, the TTSE said the application from Bourse was approved by the Exchange’s board of directors on Thursday. The fund’s prospectus was also published on Thursday in the press and on Bourse’s website

In August 2011, the TTSE’s first (and so far, only) US-dollar denominated equity listing was from the Sagicor Financial Corporation. 

The Fund will comprise securities, primarily equity and fixed income, originating from Brazil and other Latin American jurisdictions, and will be promoted and managed by Bourse Securities Ltd, the release said.

In an interview Wednesday, prior the fund’s launch, Bourse’s managing director Subhas Ramkhelawan said the investment firm’s aims with the fund is to give investors opportunities for investment into the burgeoning Latin American markets, specifically Brazil. 

“The Brazilian economy is already dominated by commodities and manufacturing, but it will also be driven by world events, namely the hosting of the 2014 FIFA World Cup and the 2016 Rio de Janeiro Olympic Games, which will boost growth though construction,” Ramkhelawan said. 

He said Bourse decided to consider a Latin American-based fund after listening to the input from its customers who were looking for new investment opportunities outside the traditional US and European markets. 

“We are opening the door for easy access into the Latin American market. We believe that local customers will appreciate the high level of income and capital appreciation we believe the fund will bring to them. The economies of Latin America are faring far better than the developed world with growth rates at over three per cent. The market will reflect this economic growth,” he added.

The Fund is open to any interested investor. The maximum size of the fund is five million units. The initial public offer period will open on May 3 and run for two weeks. Units will be issued at US$10 per unit, with a minimum purchase of 200 units (US$2,000). 

The fund’s trustees are First Citizens Asset Management, with Bourse as the administrator.