Credit Suisse PL100 - Emerging Markets Infrastructure Development Trust Launches
The Credit Suisse PL100 - Emerging Markets Infrastructure Development Trust (PL100 - EMID) was launched today. Subject to approvals, PL100 - EMID will be an Australian Securities Exchange-listed trust offering investors investment exposure to 20 international companies that are involved in the infrastructure industry and derive revenue from emerging markets.
PL100 - EMID is a unique Australian investment product that offers capital protection at maturity to the Trust to the value of $1.00 per unit on issue at maturity. The Trust was launched by Credit Suisse and Equities Trustees Limited, in conjunction with Organising Broker Macquarie Equities Limited and Lead Managers Commonwealth Bank of Australia and Ord Minnett Ltd.
The anticipated listing date for PL100 - EMID on the ASX is December 19, 2007. Credit Suisse will provide daily liquidity, both on and off market, subject to various terms and conditions set out in the Product Disclosure Statement.
Michael Clapham, Head of Equities Structured Products for Credit Suisse in Australia and New Zealand, said: “There is potential for growth of the infrastructure industry in emerging markets given expectations that infrastructure spending in the emerging market world could reach US$1 trillion in the next three years alone. China, India, Russia and the Middle East all have significant infrastructure plans underway, and among the potential beneficiaries of an increase in infrastructure spending in emerging markets are the global companies that are involved in the infrastructure industry and operate in emerging markets.”
Mr. Clapham also noted that the gross domestic product (GDP) per head of emerging market economies as a group has been growing at more than double the rate of developed economies in recent years. “With this type of growth it’s not hard to see why the push to build infrastructure within the developing world is on,” he said.
Macquarie Adviser Services Investment Senior Product Developer, Van Oayda, said: "Macquarie is pleased to be the Organising Broker of PL100 - EMID on the back of the last PL100 fund, World Water, which raised more than $112 million and gave investors the opportunity to invest in global innovative water supply and service companies. PL100 World Water was awarded Structured Product of the Year for 2007 by Hong Kong publishing company Pacific Prospect.
“This new PL 100 - EMID gives clients access to an investment in the world’s rush to build infrastructure in emerging economies. The structure is substantially the same as the first in the series and gives investors a trust that is protected, with a simple and efficient structure, providing access to emerging market infrastructure growth,” Mr. Oayda said. “In addition, EMID also has one of the cheapest fee structures for any capital protected listed product in Australia.”
Suzanne Salter, Head of Structured Equity Investments, Global Markets, Commonwealth Bank, said: “Given the compelling research around growth in emerging markets and infrastructure, it’s easy to see why we are currently experiencing an insatiable appetite for a product of this structure. Of course, the unique added benefit of it being ASX-listed will also be appealing for investors.”
Walter Lewin, Managing Director, Ord Minnett Asset Management, said: “There is very strong interest from private clients in the underlying Emerging Markets infrastructure investment case, as well as the innovative features of the PL100 series.”
PL100 - EMID has a maturity of five years, and will offer investors the potential for semi-annual distributions primarily from dividends received from a basket of securities.
The top 20 ranked stocks were selected for the Notional Portfolio from an Investable Universe of about 100 listed and publicly-traded international companies which are involved in the infrastructure industry and meet certain criteria including deriving revenue from emerging markets. The world-renowned Credit Suisse HOLTTM methodology, which seeks to identify securities that have the potential to outperform the market, was applied to select the stocks. The HOLTTM methodology offers unique insights into corporate performance and valuation, emphasizing a company’s cash-generating ability and overall potential for value creation.
The stocks of the companies or corporate groups that make up the Investable Universe of PL100 - EMID were chosen on the basis that they are involved in infrastructure, including: application software, communications equipment, computer storage, construction and engineering, farm machinery and heavy trucks, construction materials, electrical utilities, electrical components and equipment, heavy electrical equipment, power producers and energy traders, industrial machinery, integrated telecommunication services, information technology consulting and other information technology services, marine ports and other marine services, oil and gas equipment and services, steel, and wireless telecommunication services.
In addition, they must have a market capitalization greater than US$10 billion, and a 21-day average daily liquidity of at least US$10 million per day. The final filter for selection into the Investable Universe was that these companies or corporate groups must derive a minimum of 20% of their revenue from emerging markets, or have operations in emerging markets such that it is reasonable to expect they derive material revenue from emerging markets. Some of the companies are based in Spain, Netherlands, Hong Kong, China, Brazil, South Korea, France and Mexico. A full list of the portfolio can be found in the Product Disclosure Statement, together with details of how the Notional Portfolio is derived from the Investable Universe and the circumstances in which it is rebalanced.
With a minimum investment amount of A$20,000 for new investors, the offer period for the Credit Suisse PL100 - Emerging Markets Infrastructure Development Trust opens on October 29, 2007, with a close date of November 28, 2007. If you would like to read the Product Disclosure Statement or apply to invest, please contact:
o Or the Organising Broker:
Macquarie Equities Ltd. on Tel: 1800 808 001 or email@example.com
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