Fund Spotlight: April 2017

Welcome to the April edition of the Apex Capital Introduction Services Fund Spotlight delivering the latest market information including statistics around fund launches, top fund performers and information on live opportunities.

New Funds Spotlight

This months new fund spotlight is dedicated to a fund who specializes in the Mekong Region which covers an area of over 2 million square kilometers and hosts a population of 326 million people. Thailand, by luck of geography and savvy diplomacy, avoided the colonial era, Japanese “liberation” and the various versions of socialism that followed. With the exception of the finance industry, where Singapore steels the march, Thailand has alone been a central player in the development of the Mekong region leading the way in tourism, healthcare, agribusiness, retailing and education.

Today, the Mekong Region houses four of the world’s top ten fastest growing economies; coming from a low base, buoyant growth is predicted in the future. The combination of a young and dynamic population and rich resources should safeguard the Region should from economic risks elsewhere in the world. In fact, the slowing Chinese economy has encouraged the region to help develop its hinterland, with China and Japan vying for every major infrastructure project on offer.

Throughout the Region, a business minded Chinese diaspora permeates local business networks and for investors with a long-term perspective, investment opportunities abound. Opportunities present themselves in private equity, such as in hydro electric power, cement and airports; as well as in listed companies involved in construction, agribusiness and healthcare. The Bangkok and Ho Chi Minh stock markets are well developed, whilst the Yangon, Phnom Penh and Vientiane stock markets are embryonic but growing fast. Please click below to request more information on fund investments in this area.

Liquid Opportunities

Green infrastructure investing is characterized by long-dated, stable cash flows and predictable returns. Due to continuous technology and cost improvements, meaning much lower cost of production of energy, it is certainly true that green energy assets have never been so popular amongst long-term investors. This demand for fully operational sites is contrasted by a lack of capital/liquidity in the construction phase, where perhaps a more lucrative opportunity exists. Fueled by concerns over climate change and an ever increasing economic advantage over conventional energy sources, there is a pressing global need for more sustainable energy infrastructure. Unfortunately, good expertise in managing the construction phase is as rare as the capital to fund it. One of our latest and most exciting funds marries expertise and capital together to offer an uncorrelated opportunity to achieve returns that far surpass more traditional plays in this area.

Investor Appetite & Industry Trends

Raising capital in the current environment is difficult and there is a perception that emerging managers face hurdles due to a lack of scale, experience and proven track record. With the recent French election, Trumps decrease in corporate tax promise and the proposal of the UK general elections in June 2017, investor’s nerves have settled slightly since January. However, the uncertainty of the tax plans proposed by the Trump administration is also one of the many factors that could upset the markets, with a possible US government shut down if it fails to pass a new budget this week.

Elections often cause a big risk for investors as they can be disruptive when it comes to financial planning causing cause uncertainty in the markets. Politics is an extremely important factor when making an investment decision as political choices effect economic policies and outcomes, which in turn impacts the financial markets; with this in mind it will be interesting to see how the markets move over the coming months and in the lead up to the recently announced UK snap election in June.

Upcoming Events

Apex Capital Introduction Services will be attending GAIM 2017, if you are attending too it would be great to arrange a meeting with you. Contact acis@apexcis.com to arrange a meeting.