BusinessTimes
CIMB-Principal Asset Management Bhd said it is unlikely to embark on the acquisition trail amid a growing Asian unit trust industry, but instead would focus on organic growth."Our primary plan is to grow organically, particularly in Asia where the (unit trust) industry is still young," said Principal Financial Group president cum chief operating officer Larry D. Zimpleman.
"Acquisitions tend to happen once the industry matures," he added.
He was speaking to reporters after the launch of CIMB-Principal's first one-stop unit trust investment centre at The Curve shopping complex in Petaling Jaya yesterday.
A crowded and matured unit trust sector may render organic strategies unsuitable as it is a slower way of expanding in a competitive market, compared with buying out rivals.
CIMB-Principal, which manages over 60 unit trust funds worth a collective US$4.8 billion (RM16.18 billion), is a joint venture between Malaysian financial services entity CIMB Group, and US-based Principal Financial.
The company aims to grow the funds under its stewardship by up to 35 per cent per year as it rolls out more products, surpassing Malaysia's unit trust sector's estimated 25 per cent growth.
CIMB-Principal, also has operations in Indonesia and Singapore. It has an agency force of some 4,000 people.
On how the volatility in the global equity market relates to the local market, Zimpleman said based on the global equities' estimated long-term annual appreciation of between eight per cent and nine per cent, the Kuala Lumpur Composite Index is expected to post yearly upsides of more than 12 per cent.
"Given the faster growth of the Malaysian economy in Southeast Asia, my guess would be that the number is probably more than the 10 to 12 per cent category for the Malaysian market," he said.
To woo more unit trust buyers, CIMB-Principal will initially set up five one-stop investment centres known as the "Unit Trust Investment Corner" within five CIMB Bank branches.
Besides the centre at The Curve, the other four investment premises will be located in Serdang, Taman Tun Dr Ismail, Pusat Bandar Damansara, and Jalan Tun Perak.
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