NewsLatest News on SecuritiesACLEDA Securities Approved as Inaugural Distributor of Cambodia's $200M BAMC Asia Equity Fund

ACLEDA Securities Approved as Inaugural Distributor of Cambodia's $200M BAMC Asia Equity Fund

July 25, 2024

ACLEDA Securities, has marked a significant milestone in Cambodia's financial sector, having secured approval from the Securities and Exchange Regulator of Cambodia (SERC) to operate as a "Distributor Company" for Collective Investment Scheme (CIS) funds. This approval, granted on February 6, 2024, positions ACLEDA Securities as the first official CIS Fund Distributor in the Kingdom of Cambodia.

ACLEDA Securities received further approval on July 14, 2024 to commence the distribution of the BAMC Asia Equity Fund (BAEF). Banjaran Asset Management (Cambodia) PLC (BAMC), which launched the $200 million BAMC Asia Equity Fund last November with SERC approval, has also recently obtained approval to start investments within the fund as of July 15, 2024. This allows daily pricing to now reflect the valuation of the underlying assets within the BAEF.

Invest In Global Markets Through Regulated CIS Funds

The collaboration between ACLEDA Securities and BAMC Asia Equity Fund is expected to contribute to the development of Cambodia's capital markets, aligning them with international standards. Cambodian investors will now have the opportunity to invest in global markets through regulated Collective Investment Scheme funds, opening the door for more collective funds to invest in local projects under a robust regulatory framework.

Collective Investment Scheme funds, known for their stringent regulatory oversight, offer multiple layers of checks and balances by independent parties, ensuring transparency and financial stability. Periodic reports provided to investors further enhance this transparency, aligning with Cambodia's mission to maintain stability within its financial sector, the regulator emphasized during its launch event in Phnom Penh.

Dr. Prom Visoth, Director of ACS, emphasized the importance of this collaboration. "We are pleased to collaborate with BAMC, pioneering this new development within Cambodia's Capital Market sector. Following our research visit to Singapore, we recognize this as a natural evolution in the securities industry. We hope that our partnership will contribute to Cambodia's continued growth and progress," he stated.

Echoing this sentiment, Oknha Sen Pisethvannida, Director of BAMC, commented, "We are honored to be able to work with ACLEDA Group on the distribution of BAEF. This final piece will allow investors to approach any ACS branch to buy and sell units in our daily traded BAEF."

Benchmark For Responsible Investment Practices In Cambodia

The BAEF is a unit trust fund investing in stocks listed on major stock exchanges in the Asia Pacific region, excluding Japan. It aims to deliver an expected return of 7-10% per annum over the medium to long term, diversified across at least 30 stocks in various sectors such as Banking, Property, Industrials, Consumer, Telecoms, and Technology. The fund is domiciled in Cambodia, USD-denominated, and accepts daily subscriptions and redemptions, with its daily unit price available on various media channels.

This development sets a benchmark for responsible investment practices in Cambodia, addressing concerns of investors in a historically unregulated environment. The partnership between ACS and BAMC signifies a step forward in integrating Cambodia into the global financial landscape, fostering growth, and providing new investment opportunities.