##A Principal Protected, Local Currency International Investment ##
Royal Fidelity has expanded its international investment product offerings with the launch of TIGRS (Total Index-Linked Global Returns Securities) 4, an emerging-market linked fund that gives Bahamian investors an opportunity to take advantage of growth in the world’s fastest growing economies.
The fund is structured to provide 60% equity exposure to Emerging Market economies such as China, Brazil, Taiwan, Korea, and Singapore, while balancing this weighting with a 20% exposure to each of the S&P 500 U.S. Index and the MSCI European, Australasian, and Far East (EAFE) Indices.
According to Royal Fidelity President Michael Anderson the fund provides several other key benefits to investors as well. *“This is the fourth TIGRS fund that we’ve launched here, and it represents a significant opportunity for Bahamian investors. They can now use Bahamian Dollars to get 100% of the potential upside of an equity investment in the world’s fastest growing markets while knowing that, as a result of the 100% principal protection feature, they will not lose any of the money they invest.”*
The investment weighting reflects Royal Fidelity’s belief that economic growth in the Emerging Market sector will drive global growth over the coming years, a view shared by the IMF and several global investment banks. The Emerging Markets account for nearly 80% of the world’s population and are rapidly adopting more consumer-oriented habits as their economies prosper. Companies such as Samsung (Korea), Embraer (Brazil), Cemex (Mexico) and Hyundai (Korea) have already proven they can compete globally and today represent some of the world’s top multinational firms.
*“The prospects for growth within Emerging Market countries relative to Developed Markets is compelling,”* said Joseph Euteneuer, Royal Fidelity Fund Manager. *“China – with 1.3 billion citizens – represents the most dynamic picture of the forces behind this growth. Analysts estimate that nearly one million people per week are either being born into or moving into China’s cities, requiring the Chinese Government to spend massive sums on infrastructure such as housing, electricity, and roads. Companies that can meet this enormous demand stand to benefit significantly. Other Emerging Market countries like Brazil and India have experienced an explosion of consumer demand for goods and services, as their economies flourish and disposable income increases.”*
Euteneuer said that the large corporations that make up the S&P and EAFE Indices should also benefit as they increase their presence in these markets. *“These multinationals already receive anywhere from 25%-75% of their sales/revenue from outside the borders of their home countries,”* he says. *“I’m fairly certain that the current demographics of these countries and potential business opportunities have not escaped the attention of S&P companies like Coca Cola, Microsoft and Exxon Mobil, or EAFE companies such as Nestle, Royal Dutch Shell and HSBC.”*
The Royal Fidelity TIGRS 4 fund links to equity indexes in Emerging Markets, the US, and Europe, Australasia and the Far East. The 5-year closed-end fund offering opens November 29th and closes December 10th, with a $5 million total issue.
Application Forms, contact details and further information are available [online](http://www.royalfidelity.com) at the TIGRS link.