EFG Financial Products AG, the Zurich-based structured products distributor, has raised more than 1 million Swiss francs ($1.1 million) selling certificates linked to a gauge of companies with business tied to Myanmar.
Most sales have taken place this month, Manuel Duerr, who oversees distribution of structured products to individual investors, wrote by e-mail. The company began offering the investments tracking its Solactive Myanmar-Focused Asia Index on Switzerland’s Scoach exchange in November. The equity gauge includes 11 companies that currently focus their business on the Southeast Asian nation or bordering countries, or plan to do so.
Myanmar remains one of the world’s few underdeveloped markets with high growth potential, as President Thein Sein seeks to liberalize the economy, Duerr said. Natural resources in the nation span gas, gems and possibly oil, according to the World Bank.
The certificates were issued in the Swiss franc, euro and U.S. dollar. The largest weightings in the index are on PTT Pcl (PTT) and PTT Exploration & Production Pcl (PTTEP), both Thai oil and gas companies, in addition to Siam Cement Pcl (SCC) and UOL Group Ltd. (UOL), a Singaporean property developer, according to EFG.
Returns on the 10-year products directly follow the index and don’t protect principal. The gauge has gained 12 percent as of Jan. 17 since its Nov. 19 listing, according to Bloomberg data.
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