CIMB Thai Bank signs an MoU with Mirae Asset Global Investments and launches a new fund that allows Thai investors access to South Korea's blue-chip and diversified sectors.

CIMB Thai Bank, the Thailand-based subsidiary of Malaysia's CIMB Principal Asset Management, has partnered with South Korea-based Mirae Asset Global Investments to launch a new equity fund to local investors.

The CPAM Korea Equity Strategic Fund is designed to invest in units within the Mirae Asset Equity Fund in a bid to take advantage of South Korea's solid economic position, which is benefitting from the rebound in the European and US economies. 

The fund will invest in South Korea's blue-chip equities and diversified sectors. It is open to the public from 1 to 8 April 2014 and will require a minimum subscription of THB5,000 ($155).

The launch is the initial stage in the partnership between the two companies, whose memorandum of understanding states that they agree to exchange analyst researches, share financial product development ideas and contribute to each other's market expansion strategies in the two countries. 

In a statement, CIMB-Principal, the parent firm, noted that this is the right time to invest in Korea equities due to the country's high foreign exchange reserves and strong consumption index. The South Korea government is targetting to increase its country's gross domestic product growth to 4 per cent by 2017.