Swiss & Global Asset Management is expanding its range of emerging market equity funds with the launch of the Julius Baer Chindonesia Fund. The fund will enable investors to tap into the growth potential of China, India and Indonesia, countries which are becoming the backbone of the Asian economy. 


Chindonesia is home to 40% of the world’s population, around 2.8 billion people, and will add at least 170 million people to its workforce over the next ten years. Asia – especially China – is the manufacturing hub of the world and aspires to be a global leader in technology and services. Broad investments in marketing and research as well as an increasing number of graduates fuel these developments.


The Julius Baer Chindonesia Fund, an actively managed UCITS III vehicle, identifies stocks in their early growth phase with a competitive advantage. The fund combines direct exposure to Chindonesia with investments in satellite countries benefiting from economic ties with the region.


The fund is co-managed by Asian equity experts Vincent Lagger and Jian Shi Cortesi.


Jian Shi Cortesi, co-fund manager of the Julius Baer Chindonesia Fund says: “Chindonesia’s economic activity today already equals 47% of the US economy. For the past eight years the countries have been the top three profit generators in Asia. The twenty-first century may well become the ‘Chindonesia’ century. Indonesia is a leading supplier of energy and soft commodities, leveraging the growth of China and India. More importantly, it exhibits positive demographic trends, financial advantages and political stability. Compared to many emerging markets, Chindonesia has relatively low public debt and moderate budget deficits. This has helped the countries maintain their superior growth since the financial turmoil.”


Vincent Lagger, co-fund manager of the Julius Baer Chindonesia Fund adds: “A minimum of 80% of portfolio assets will be allocated to the Chindonesia universe. The remaining 20% can be invested in companies listed outside Chindonesia, but which generate a majority of their revenues in the three countries. This satellite exposure gives access to attractive investment opportunities not available in the core universe. For example, resources companies from Mongolia and Kazakhstan, gambling companies from Hong Kong or consumer electronics companies from Taiwan and Korea.”


The Julius Baer Chindonesia Fund as a Subfund of Julius Baer Multistock is a Luxembourg domiciled fund, exclusively managed by Swiss & Global Asset Management Ltd., a member of the GAM group.
