BusinessTimes
OSK-UOB Unit Trust Management Bhd expects its latest fund, the OSK-UOB Asia Active Allocation (Triple A fund), to reap a potential return of 13 per cent to 15 per cent per annum within a three- to five-year time frame.
"The Triple-A fund aims to provide investors with long-term capital appreciation and current income through investments in securities of Asia's large and small companies and fixed incomes securities," its executive director and chief executive officer Ho Seng Yee said at the launch in Kuala Lumpur yesterday.
The company expects sales for the new fund to hit between RM150 million and RM200 million within the initial offer period beginning today to November 12 2007.
The approved fund size stands at 800 million units of 50 sen per unit, with minimum investment of RM1,000.
Ho said the fund will apply an active asset allocation that can adapt to market conditions, to optimise returns.
"Different asset classes respond in a different manner as the economy goes through its various stages of expansion and contraction. As such, by adopting a portfolio diversification strategy that covers both Asian equities and Asian fixed income, the Triple-A fund is poised to actively manage the volatility for stable long-term returns," Ho said.
The fund is exclusively distributed by United Overseas Bank (Malaysia) Bhd, while the external investment manager is UOB Asset Management Ltd, Singapore (UOBAM).
Depending on investment conditions and opportunities, UOBAM will invest 20 per cent to 60 per cent of the fund's net asset value in the securities of Asian large companies and, or up to 40 per cent in Asian small companies and, or 20 per cent to 60 per cent in fixed incomes securities or money market instrument.
OSK-UOB is planning to launch another one or two funds before the end of this year to boost its asset size to RM3.5 to RM4 billion, said Ho.
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