KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd is targeting to grow its total funds under management to about RM5bil by end-2008 from RM3.6bil currently.
Chief executive officer Ho Seng Yee said the company would launch various products – local, regional and global – to enlarge its fund size.
»We will be launching five funds by the first half of next year and another few within the year« HO SENG YEE
“We will be launching five funds by the first half of next year and another few within the year.
“We will also re-launch some of our existing funds which we feel have the potential,” he said after the launch of OSK-UOB Big Cap China Enterprise yesterday.
With the new product, it now has 32 funds under its stable. According to Ho, the new fund would potentially bring in annualised returns of between 15% and 18%.
He said the fund was the first in the country that focused on pure China plays and aimed to provide investors with long-term capital appreciation by investing in securities of companies with high growth potential.
It would invest in equities and equity-linked securities issued by companies whose businesses were in China and those with a market capitalisation of at least US$1bil, he added.
UOB Asset Management Ltd (UOBAM) of Singapore is the external investment manager for Big Cap China Enterprise.
UOBAM senior director and head of Asia ex-Japan equities Colin Ng said some of the sectors the fund would invest were consumer, infrastructure and environment.
Ho said China had been the world’s fastest growing economy in recent years due to rising urbanisation and industrialisation, increasing income of the mass population, strong domestic consumption and favourable demographic profiles.
Ng added that the Chinese market was flush with liquidity worth trillions of dollars and the risk of the economy overheating was minimal, as the government was careful in its monetary and fiscal policy measures to balance its economic growth and overheating risks.
According to reports, he said, the Chinese economy was also less sensitive to a potential US economic slowdown.
With an approved size of 400 million units, Big Cap China Enterprise is offered to the public at an initial unit price of 50 sen.
The offer period is from Dec 3 to Dec 23 and the initial minimum investment is RM1,000.
OSK-UOB Unit Trust Management is currently ranked among the top 10 players in the investment management business.
