Xie Ganquan said in an interview that the Singapore Overseas Index has a stable long-term record in terms of relatively low dividend yield and volatility, which is mainly due to the deep coverage of core industries with better resilience such as banks, real estate, telecommunications and industry among the constituent stocks.
The fund is currently exclusively launched on Zhian Investment's digital platform and is only for Singapore investors. Xie Ganquan, president of the South Asia region of Oriental Huili Asset Management, revealed to Lianhe Zaobao that in the longer term, it is hoped that global investors can invest in this fund.
"The index hits a new high is a conventional phenomenon, which reflects the overall returns of a country or market. The recent rise of the Sea Index is mainly due to the inflow of a large amount of capital into Singapore. Based on a stable currency, political system, etc., Singapore is regarded as a "safe haven"; capital inflows will make the banking industry particularly profitable, and other industries will also benefit, which is one of the reasons that supports the rise of the Sea Index."
The Singapore Ocean Index hit a new high recently, and once rose 4130 points during the trading session on Tuesday (15th), closing at 4119.82 points. In response, Ding Yu, chief investment director of Zhian Investment, told Lianhe Zaobao that the repeated hitting new highs does not mean that it will no longer continue to rise.
Oriental Huili Asset Management Company (Amundi) announced on Wednesday (July 16) that it will cooperate with investment platform Endowus to launch the "Oriental Huili Straits Times", which is the first unit-trust-based index fund to track the sea index.
Ding Yu added that this does not mean that investors should bet on the Sea Index completely. After all, in the long run, the Sea Index's return rate is still relatively low compared with the US stock market and other companies. However, he is still optimistic about the trend of the Navy in the medium term, because the trend of capital flowing into Singapore will continue.
"We are launching this fund now to provide all investors with an option to maintain exposure to Singapore's long-term economic growth potential while also gaining investment opportunities with stable income and defensive allocation."