TheEdge
KUALA LUMPUR: Malaysia’s interest rates are still at the appropriate level and supportive of economic growth amid rising inflation, said Bank Negara governor Tan Sri Zeti Akhtar Aziz.
She said rising inflation was mainly due to rising costs and this might not be addressed by interest rates but other policies, citing the government’s recent plan to set up the National Price Council to tackle issues pertaining to price and cost of living.
“The interest rates are still below neutral and therefore it has not inhibited any contraction in borrowing. In fact, lending activities are still very robust — consumer lending as well as for small and medium enterprises (SME) and businesses,” she said after launching the Labuan International Business and Financial Centre yesterday.
She added funds were being raised in the bond market to finance the increased investment activities in the country, “so at this stage interest rates are still at the appropriate level”.
Zeti was asked to comment on the recent move by the US Federal Reserve to cut interest rates by 75 basis points to 3.5% to avert a recession. Bank Negara has kept its overnight policy rate (OPR) at 3.5% since 2006.
“We are having a monetary policy meeting tomorrow. We will discuss the new emerging trends moving forward and we will be issuing a monetary policies statement tomorrow,” Zeti said.
She added Bank Negara would also take into account the underlying trends and economic outlook. “We are not looking at conditions. We are looking three months, six months and 12 months down the road and we are going to make that assessment at the meeting,” she added.
She said the Malaysian economy had been growing steadily over the years amid the uncertain global outlook.
“We believe the Asian economy does have a high degree of resilience,” Zeti said.
“We are facing this period of uncertainty in the global environment from a position of strength and we have the capacity to deal with it.”
Meanwhile, economists expect the central bank to keep the OPR unchanged to remain supportive of domestic demand in the wake of increasing external risks.
CIMB economics research chief economist Lee Heng Guie said he expected the OPR to remain unchanged as the current interest rate level was sufficient to support domestic demand amid increased downside risks to global growth.
“Should growth and domestic demand falter, then a cut becomes likely,” he said.
Singapore’s DBS Equity Research said Malaysia’s economic growth and inflation was a balancing act and the 3.5% policy rate was still appropriate to curb inflationary pressure while being conducive to growth.
“We continue to expect the OPR to remain at 3.5% as Bank Negara watches the data on inflation and growth,” it said, adding Malaysia’s policymakers were vigilant about inflationary pressures due to high global food and energy prices and a possible fuel subsidy cut.
Meanwhile, CIMB’s Lee said higher inflation thus far has not been demand-driven but a result of higher global food and commodity prices and supply constraints.
He said estimates showed headline inflation could increase to between 3.3% and 3.8% in 2008 should there be an adjustment of petrol prices and other administered price increases.
Without a price adjustment, he expected inflation this year to remain benign at 2.3% compared to 2% last year.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, January 30, 2008
Market Trends
TheStar
PETALING JAYA: Gold prices yesterday hit a historic high for the third day in a row on supply shortage worries and expectations of further interest rate cuts in the US.
According to Bloomberg data, spot gold price rose to a record US$929.84 per troy ounce early yesterday, before dipping to a low of US$921.60 at midday.
The metal was almost flat at US$928.50 at press time, versus its previous close of US$928.97.
Gold’s allure as a hedge against inflation and a safe-haven asset is unblemished, despite its price rising some 40% over the past six months. Some analysts are predicting that it would hit US$1,000 an ounce this year. With crude oil at US$90 per barrel and slower global economic growth forecast for this year, gold is winning over new admirers from international fund managers to wealthy investors in China and India.
While demand is rising, disruption in output from a major producer would push prices higher.
According to reports, South Africa’s worst electricity crisis in decades had crippled mining operations in the country since last Friday.
According to reports, South Africa’s worst electricity crisis in decades had crippled mining operations in the country since last Friday.
South Africa is the world’s second biggest producer of gold, behind China, with about 15% of the total global gold supply.
But the gold price upswing was capped yesterday, after South Africa's state-owned power utility company said it would increase supply to mining companies to 90% of their usual requirement by the end of the week.
Most mines were operating with 70% power supply yesterday, and they needed 90% to start gold production activities.
But investors were mostly chasing the precious metal higher on anticipation that the US Federal Reserve would further slash borrowing cost today at the end of its two-day scheduled meeting.
Last week, the US Federal Reserve made an unprecedented move to cut the benchmark rate by 75 basis points to 3.5% in an emergency meeting after weak US economic data and plummeting global stock markets fuelled fears that a US recession was imminent.
Gold price climbed above US$900 an ounce for the first time on Jan 24, after the surprise rate cut was announced.
Analysts said lower interest rates had weakened the US dollar and boosted the appeal of investing in gold. The metal is also regarded as a safe bet at times of crisis and uncertainties.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Tuesday, January 29, 2008
EPF move good for market
TheEdge
PETALING JAYA: The Employees Provident Fund’s (EPF) move to lower the Account 1 investment withdrawal threshold beginning Feb 1 would result in a significant flow of capital into the equity market, analysts said.
The move would release a bit more money into the market with the unit trust sector likely to benefit the most, said Kenny Yee, head of OSK Research.
“The actual impact is yet to be seen, but relaxing the ruling is good for the market,” he said.
An analyst at a local bank-backed research house said the move would mean more money for people to invest. “There will be more funds available out there.” he said.
EPF on Friday introduced its “Beyond Savings” initiative that links the threshold for Account 1 withdrawals for investment through approved institutions to the member’s age, compared with a minimum savings of RM50,000 for all ages previously.
Under the scheme, a 30-year-old member, for instance, may withdraw 20% of the amount in excess of a lower threshold of RM18,000, for investment through approved institutions. A younger member would have a lower threshold and, conversely, an older member a higher threshold.
EPF deputy chief executive officer (operation) Ibrahim Taib said the new initiative was expected to double members’ withdrawals for alternative investment from a monthly average of RM270 million to RM300 million.
He said the EPF move would give members the advantage of investing at a younger age. The change in policy would enable 1.76 million members to withdraw from Account 1 for investment elsewhere, compared with 850,000 eligible members previously.
An analyst at an investment bank said this would encourage people to diversify their investment portfolio.
“It allows them to make decisions with regards to their savings,” he said, agreeing that the unit trust sector has the most to benefit from the EPF move.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PETALING JAYA: The Employees Provident Fund’s (EPF) move to lower the Account 1 investment withdrawal threshold beginning Feb 1 would result in a significant flow of capital into the equity market, analysts said.
The move would release a bit more money into the market with the unit trust sector likely to benefit the most, said Kenny Yee, head of OSK Research.
“The actual impact is yet to be seen, but relaxing the ruling is good for the market,” he said.
An analyst at a local bank-backed research house said the move would mean more money for people to invest. “There will be more funds available out there.” he said.
EPF on Friday introduced its “Beyond Savings” initiative that links the threshold for Account 1 withdrawals for investment through approved institutions to the member’s age, compared with a minimum savings of RM50,000 for all ages previously.
Under the scheme, a 30-year-old member, for instance, may withdraw 20% of the amount in excess of a lower threshold of RM18,000, for investment through approved institutions. A younger member would have a lower threshold and, conversely, an older member a higher threshold.
EPF deputy chief executive officer (operation) Ibrahim Taib said the new initiative was expected to double members’ withdrawals for alternative investment from a monthly average of RM270 million to RM300 million.
He said the EPF move would give members the advantage of investing at a younger age. The change in policy would enable 1.76 million members to withdraw from Account 1 for investment elsewhere, compared with 850,000 eligible members previously.
An analyst at an investment bank said this would encourage people to diversify their investment portfolio.
“It allows them to make decisions with regards to their savings,” he said, agreeing that the unit trust sector has the most to benefit from the EPF move.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Strong response to Gulf firm’s RM1b bonds
TheStar
PETALING JAYA: Gulf Investment Corp GSC's (GIC) two tranches of fixed rate bonds totalling RM1bil has been oversubscribed by an average 2.76 times.
The regional financial institution is owned by the six-member Gulf Cooperation Council.
In a joint statement, lead arranger ABN Amro Bank (M) Bhd together with joint lead managers and joint bookrunners RHB Investment Bank Bhd and Standard Chartered Bank Malaysia Bhd said the bonds would be issued on Feb 5.
The first tranche of RM600mil has a maturity of five years and a coupon rate of 3.98% while the second tranche of RM400mil has a maturity of 15 years and a coupon rate of 4.52%.
The banks said the bond issuance represented the first issue by a Middle Eastern multilateral institution in the ringgit debt market.
The bonds have been accorded the highest AAA rating while the company has been accorded a financial institutions rating of AAA/P1 with a stable outlook by RAM Rating Services Bhd.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PETALING JAYA: Gulf Investment Corp GSC's (GIC) two tranches of fixed rate bonds totalling RM1bil has been oversubscribed by an average 2.76 times.
The regional financial institution is owned by the six-member Gulf Cooperation Council.
In a joint statement, lead arranger ABN Amro Bank (M) Bhd together with joint lead managers and joint bookrunners RHB Investment Bank Bhd and Standard Chartered Bank Malaysia Bhd said the bonds would be issued on Feb 5.
The first tranche of RM600mil has a maturity of five years and a coupon rate of 3.98% while the second tranche of RM400mil has a maturity of 15 years and a coupon rate of 4.52%.
The banks said the bond issuance represented the first issue by a Middle Eastern multilateral institution in the ringgit debt market.
The bonds have been accorded the highest AAA rating while the company has been accorded a financial institutions rating of AAA/P1 with a stable outlook by RAM Rating Services Bhd.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
New fund from MCIS Zurich
TheStar
PETALING JAYA: MCIS Zurich Insurance Bhd, which has continued to attract investor interest for all its investment-linked insurance funds, has added a fifth fund – MZ Dividend Fund.
Its other four funds are the MZ Growth Fund, the MZ Equity Fund, the MZ Balanced Fund, and the MZ Jati Fund.
Chief executive officer Md Adnan Md Zain said he was confident the fund would be well received by investors as it offered the potential of attractive returns on investment as well as the protection element inherent in insurance.
“The fund is designed for defensive investors who seek steady, consistent investment income and potential capital appreciation over the medium to long term.
“It is a product that serves as a beacon of light in the face of murky market volatility – the bane of every investor, as it offers consistent value creation particularly in periods of market volatility,” he said.
The fund’s investment focus would be on fundamentally sound and high dividend yielding counters listed on Bursa Malaysia, as well as liquid and high-yielding money market instruments, Adnan said.
On its investment philosophy, he added: “The time-tested and prudent investment approach would be to emphasise on fundamentals and ride the long-term wave. MZ Dividend Fund selectively invests in fundamentally sound businesses with good dividend track records.
“This dividends-based strategy has been proven throughout the years as an integral way of ensuring investors realise respectable rates of return without incurring undue investment risks.”
Asked the sales target, Adnan said: “Following the fund’s soft launch, the company has seen encouraging interest from and take-up by new and existing customers. We believe that interest for this product will continue to grow in the weeks ahead.”
Investors who take up units in MZ Dividend Fund during the promotional period from Jan 21 to Feb 20 will enjoy a introductory offer price of 50 sen per unit and a free one-year personal accident policy cover valued at between RM10,000 andRM100,000.
MCIS Zurich, as a leading composite insurer, currently has total assets in excess of RM2.6bil and gross premium income close to RM500mil. It had 26 branches nationwide and employs more than 500 staff and 5,000 agents.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PETALING JAYA: MCIS Zurich Insurance Bhd, which has continued to attract investor interest for all its investment-linked insurance funds, has added a fifth fund – MZ Dividend Fund.
Its other four funds are the MZ Growth Fund, the MZ Equity Fund, the MZ Balanced Fund, and the MZ Jati Fund.
Chief executive officer Md Adnan Md Zain said he was confident the fund would be well received by investors as it offered the potential of attractive returns on investment as well as the protection element inherent in insurance.
“The fund is designed for defensive investors who seek steady, consistent investment income and potential capital appreciation over the medium to long term.
“It is a product that serves as a beacon of light in the face of murky market volatility – the bane of every investor, as it offers consistent value creation particularly in periods of market volatility,” he said.
The fund’s investment focus would be on fundamentally sound and high dividend yielding counters listed on Bursa Malaysia, as well as liquid and high-yielding money market instruments, Adnan said.
On its investment philosophy, he added: “The time-tested and prudent investment approach would be to emphasise on fundamentals and ride the long-term wave. MZ Dividend Fund selectively invests in fundamentally sound businesses with good dividend track records.
“This dividends-based strategy has been proven throughout the years as an integral way of ensuring investors realise respectable rates of return without incurring undue investment risks.”
Asked the sales target, Adnan said: “Following the fund’s soft launch, the company has seen encouraging interest from and take-up by new and existing customers. We believe that interest for this product will continue to grow in the weeks ahead.”
Investors who take up units in MZ Dividend Fund during the promotional period from Jan 21 to Feb 20 will enjoy a introductory offer price of 50 sen per unit and a free one-year personal accident policy cover valued at between RM10,000 andRM100,000.
MCIS Zurich, as a leading composite insurer, currently has total assets in excess of RM2.6bil and gross premium income close to RM500mil. It had 26 branches nationwide and employs more than 500 staff and 5,000 agents.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Monday, January 28, 2008
Overwhelming Response To New MyETFf Dow Jones Islamic Fund
Bernama
KUALA LUMPUR, Jan 25 (Bernama) -- The newly-launched exchange traded fund called MyETF Dow Jones Islamic Market Malaysia Titans 25 has received overwhelming response with the public spread being oversubscribed by 31.5 million units on its second day of subscription Thursday.
The fund, MyETF-DJIM25, launched on Jan 21, is the country's first National ETF as well as Asia's first Shariah-compliant ETF and is scheduled to be listed on Bursa Malaysia's Main Board next Thursday.
It gives investors immediate exposure to 25 leading Shariah-compliant companies listed on Bursa Malaysia, said Zainal Izlan Zainal Abidin, the chief executive officer of i-VCAP, the fund manager for MyETF-DJIM25.
He said that in the wake of overwhelming response from retail and institutional investors, government-linked investment companies (GLICs) participating in MyETF-DJIM25 are paring down their stakes by a further 80 million units to allow greater subscription by the public.
The seven GLICs were initially set to subscribe up to 700 million units of MyETF-DJIM25, while the balance of 140 million was to be made available for the public.
"The decision by the GLICs to further reduce their subscription in the National ETF is in line with one of the objectives of the fund, which is to increase the free float of the stocks comprised in MyETF-DJIM25, so as to boost liquidity and promote greater retail participation in the stock market," said Zainal Izlan in a statement here Friday.
He said that the move by the GLICs allows more retail and institutional investors to subscribe to MyETF-DJIM25.Among stocks within the index include Sime Darby Bhd, IOI Corporation Bhd, DiGi. Com Bhd, Kuala Lumpur Kepong Bhd, MISC Bhd, Gamuda Bhd and PPB Group Bhd.
Investors can subscribe from participating dealers - CIMB Investment Bank Bhd and OSK Investment Bank Bhd and selling agents - Aseambankers Malaysia Bhd and Affin Investment Bank Bhd - until next Monday.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR, Jan 25 (Bernama) -- The newly-launched exchange traded fund called MyETF Dow Jones Islamic Market Malaysia Titans 25 has received overwhelming response with the public spread being oversubscribed by 31.5 million units on its second day of subscription Thursday.
The fund, MyETF-DJIM25, launched on Jan 21, is the country's first National ETF as well as Asia's first Shariah-compliant ETF and is scheduled to be listed on Bursa Malaysia's Main Board next Thursday.
It gives investors immediate exposure to 25 leading Shariah-compliant companies listed on Bursa Malaysia, said Zainal Izlan Zainal Abidin, the chief executive officer of i-VCAP, the fund manager for MyETF-DJIM25.
He said that in the wake of overwhelming response from retail and institutional investors, government-linked investment companies (GLICs) participating in MyETF-DJIM25 are paring down their stakes by a further 80 million units to allow greater subscription by the public.
The seven GLICs were initially set to subscribe up to 700 million units of MyETF-DJIM25, while the balance of 140 million was to be made available for the public.
"The decision by the GLICs to further reduce their subscription in the National ETF is in line with one of the objectives of the fund, which is to increase the free float of the stocks comprised in MyETF-DJIM25, so as to boost liquidity and promote greater retail participation in the stock market," said Zainal Izlan in a statement here Friday.
He said that the move by the GLICs allows more retail and institutional investors to subscribe to MyETF-DJIM25.Among stocks within the index include Sime Darby Bhd, IOI Corporation Bhd, DiGi. Com Bhd, Kuala Lumpur Kepong Bhd, MISC Bhd, Gamuda Bhd and PPB Group Bhd.
Investors can subscribe from participating dealers - CIMB Investment Bank Bhd and OSK Investment Bank Bhd and selling agents - Aseambankers Malaysia Bhd and Affin Investment Bank Bhd - until next Monday.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Investors Confident Of Market Improving, ING Survey Shows
Bernama
KUALA LUMPUR, Jan 25 (Bernama) -- Investors are optimistic that Bursa Malaysia will gain momentum and improve further in the next three month despite the current turbulence affecting regional and global markets, according to a survey by global financial institution ING.
About 49 percent or half of the respondents in the ING Investor Sentiment Index survey believed that the local stock market will get better in the next three months.
"Government policies, such as the continued roll-out of economic regions, are viewed favourably by 54 percent of Malaysian investors," said ING Funds Bhd's chief executive officer Steve Ong.
In terms of asset allocation, more Malaysians were shifting investments to properties and gold, he said in a statement today.
Ong said the survey showed that Syariah-compliant investment products were beginning to pick up, as 69 percent of Malaysian investors said they would consider investing in such products.
"When choosing a Syariah-compliant investment product, investors said that fund performance is more important than the fund manager who managed it," he said.
"Investors mostly prefer to invest in funds with consistent but average performance and they will also continue to be cautious in the next few months but the overall sentiment is optimistic," he added.
Ong said equities will continue to be an important asset class this year although this must be exercised with care.
"While some counters might be affected by a recession in the United States, there are still opportunities for investors to participate in the Asia-Pacific equity markets, and China in particular," he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR, Jan 25 (Bernama) -- Investors are optimistic that Bursa Malaysia will gain momentum and improve further in the next three month despite the current turbulence affecting regional and global markets, according to a survey by global financial institution ING.
About 49 percent or half of the respondents in the ING Investor Sentiment Index survey believed that the local stock market will get better in the next three months.
"Government policies, such as the continued roll-out of economic regions, are viewed favourably by 54 percent of Malaysian investors," said ING Funds Bhd's chief executive officer Steve Ong.
In terms of asset allocation, more Malaysians were shifting investments to properties and gold, he said in a statement today.
Ong said the survey showed that Syariah-compliant investment products were beginning to pick up, as 69 percent of Malaysian investors said they would consider investing in such products.
"When choosing a Syariah-compliant investment product, investors said that fund performance is more important than the fund manager who managed it," he said.
"Investors mostly prefer to invest in funds with consistent but average performance and they will also continue to be cautious in the next few months but the overall sentiment is optimistic," he added.
Ong said equities will continue to be an important asset class this year although this must be exercised with care.
"While some counters might be affected by a recession in the United States, there are still opportunities for investors to participate in the Asia-Pacific equity markets, and China in particular," he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
EPF lowers threshold for Account 1 withdrawals
TheEdge
KUALA LUMPUR: The Employees Provident Fund (EPF) members need no longer have at least RM50,000 in Account 1 to invest 20% of the excess amount through approved investment institutions.
Under its new "Beyond Savings" initiative, effective Feb 1, EPF is allowing its members to make such withdrawals at a lower threshold corresponding to their age, while ensuring they would accumulate at least RM120,000 at age 55.
“That RM50,000 threshold is no longer a criterion. The criterion is now variable at the different ages,” said EPF deputy chief executive officer (operation) Ibrahim Taib at a press conference here on Jan 25.
He said the change would give members the advantage of investing at an earlier age.
For instance, the threshold for a 30 year-old is RM18,000. If the person has RM30,000 in his Account 1, he may now invest 20% of RM12,000 (the excess amount) through approved investment institutions.
But members should make informed decision when investing, cautioned Ibrahim.
“If you can make informed decision, then go ahead and invest. The best investment is still in EPF,” he said, adding that members should not invest if they are not prepared to face possible losses.
Ibrahim said about 1.76 million EPF members would be eligible to participate in the scheme following this change, compared with 850,000 members previously, while monthly withdrawals were expected to double from the current average of RM270 million to RM300 million. EPF had been receiving approximately 20,000 applications each month, he added.
On the RM120,000 projection, Ibrahim said the figure was derived based on the calculation for a person who started work at the age of 18 with a pay of RM440, annual salary increment of 3% and an EPF dividend rate of 4%. This figure would be reviewed on a five-year basis.
Ibrahim also reiterated that the 5.5% contribution for employees and 6% for employers in respect of employees aged 55 to 75 was mandatory.
“Dividends would be paid until the member reaches the age of 75,” he said, adding the change was aimed at encouraging those above 55 years old to continue working.
Members and their employers have the option to contribute more than the prescribed level. This new rate does not apply to members above 55 years old who are currently working and have yet to make any age-55 withdrawal. These workers and employers would continue to make contribution of 23%.
EPF also announced that any savings not withdrawn by the age of 80 would be transferred to the Registrar of Unclaimed Monies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The Employees Provident Fund (EPF) members need no longer have at least RM50,000 in Account 1 to invest 20% of the excess amount through approved investment institutions.
Under its new "Beyond Savings" initiative, effective Feb 1, EPF is allowing its members to make such withdrawals at a lower threshold corresponding to their age, while ensuring they would accumulate at least RM120,000 at age 55.
“That RM50,000 threshold is no longer a criterion. The criterion is now variable at the different ages,” said EPF deputy chief executive officer (operation) Ibrahim Taib at a press conference here on Jan 25.
He said the change would give members the advantage of investing at an earlier age.
For instance, the threshold for a 30 year-old is RM18,000. If the person has RM30,000 in his Account 1, he may now invest 20% of RM12,000 (the excess amount) through approved investment institutions.
But members should make informed decision when investing, cautioned Ibrahim.
“If you can make informed decision, then go ahead and invest. The best investment is still in EPF,” he said, adding that members should not invest if they are not prepared to face possible losses.
Ibrahim said about 1.76 million EPF members would be eligible to participate in the scheme following this change, compared with 850,000 members previously, while monthly withdrawals were expected to double from the current average of RM270 million to RM300 million. EPF had been receiving approximately 20,000 applications each month, he added.
On the RM120,000 projection, Ibrahim said the figure was derived based on the calculation for a person who started work at the age of 18 with a pay of RM440, annual salary increment of 3% and an EPF dividend rate of 4%. This figure would be reviewed on a five-year basis.
Ibrahim also reiterated that the 5.5% contribution for employees and 6% for employers in respect of employees aged 55 to 75 was mandatory.
“Dividends would be paid until the member reaches the age of 75,” he said, adding the change was aimed at encouraging those above 55 years old to continue working.
Members and their employers have the option to contribute more than the prescribed level. This new rate does not apply to members above 55 years old who are currently working and have yet to make any age-55 withdrawal. These workers and employers would continue to make contribution of 23%.
EPF also announced that any savings not withdrawn by the age of 80 would be transferred to the Registrar of Unclaimed Monies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, January 25, 2008
More Foreign Investors Keen To Invest In REITs
Bernama
KUALA LUMPUR, Jan 24 (Bernama) -- More foreign investors are interested to invest in real estate investment trusts (REITs) in the region.
AmanahRaya-JMF Asset Management Sdn Bhd managing director, Datuk Mohamed Azahari Mohamed Kamil, said currently, Singapore and Malaysia dominated the REIT markets in South-East Asia with a total market capitalisation of approximately US$22 billion (US$1=RM3.27).
He said this at REIT Review Asia 2008 conference in Singapore on Tuesday.
He said yield for Malaysian REITs of seven percent was considered attractive to investors, especially for those who sought long-term stable returns on investments in the real estate sector.
"With 11 REITs listed on the Bursa Malaysia with a total market capitalisation of US$1.6 billion, there is lot of growth potential especially in terms of more acquisitions of more assets by the existing REITs as well as new REITs to be listed in future.
"There is also Middle East interest to list their properties through REITs in Malaysia and Singapore," he said.
He said AmanahRaya, as one of the leading REIT players with assets of RM645.52 million, hoped that the market would continue to grow this year.
"AmanahRaya will be one of the active contributors towards the growth of regional REITs through its recent collaboration with Gapuraprima Group, an Indonesian developer listed on the Jakarta Stock Exchange," he said.
Mohamed Azahari said the company expected an increase in the market capitalisation in Singapore and Malaysia and was confident more investors would consider investing in REITs.
"With the recent sub-prime, credit crunch and banking crisis, there will be opportunities for asset managers to conduct portfolio rebalancing and we believe that REITs will continue to be preferred.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR, Jan 24 (Bernama) -- More foreign investors are interested to invest in real estate investment trusts (REITs) in the region.
AmanahRaya-JMF Asset Management Sdn Bhd managing director, Datuk Mohamed Azahari Mohamed Kamil, said currently, Singapore and Malaysia dominated the REIT markets in South-East Asia with a total market capitalisation of approximately US$22 billion (US$1=RM3.27).
He said this at REIT Review Asia 2008 conference in Singapore on Tuesday.
He said yield for Malaysian REITs of seven percent was considered attractive to investors, especially for those who sought long-term stable returns on investments in the real estate sector.
"With 11 REITs listed on the Bursa Malaysia with a total market capitalisation of US$1.6 billion, there is lot of growth potential especially in terms of more acquisitions of more assets by the existing REITs as well as new REITs to be listed in future.
"There is also Middle East interest to list their properties through REITs in Malaysia and Singapore," he said.
He said AmanahRaya, as one of the leading REIT players with assets of RM645.52 million, hoped that the market would continue to grow this year.
"AmanahRaya will be one of the active contributors towards the growth of regional REITs through its recent collaboration with Gapuraprima Group, an Indonesian developer listed on the Jakarta Stock Exchange," he said.
Mohamed Azahari said the company expected an increase in the market capitalisation in Singapore and Malaysia and was confident more investors would consider investing in REITs.
"With the recent sub-prime, credit crunch and banking crisis, there will be opportunities for asset managers to conduct portfolio rebalancing and we believe that REITs will continue to be preferred.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Starhill REIT 6-month net income up 14.6pc
BusinessTimes
STARHILL Real Estate Investment Trust (Starhill REIT) reported a revenue of RM53.58 million for the six months ended December 31, 2007, an increase by 11.8 per cent over the RM47.94 million posted in the same period of 2006.
Net income for the period grew to RM40.11 million compared to RM35.00 million, an increase of 14.6 per cent.
The improved performance was due mainly to rentals received from The Residences at The Ritz-Carlton, Kuala Lumpur, coupled with higher rental rates received from the renewal of existing tenancies and the commencement of new tenancies at Starhill Gallery and Lot 10 Shopping Centre.
“Starhill REIT’s portfolio of high-end, prime properties continued to register strong performance for the first half of the 2008 financial year, underscoring the high quality of these assets and their ability to generate solid and sustainable levels of rental income for the Trust,” said Tan Sri Dr Francis Yeoh Sock Ping, in a statement today.
He is the chief executive officer of Pintar Projek Sdn Bhd, the manager of the Trust.
A distribution of 3.4025 sen per unit, representing some 100 per cent of Starhill REIT’s income after taxation for the six-month period ended December 31, 2007, was also recommended by Pintar Projek.
Based on Starhill REIT’s five-day volume weighted average unit price of 90 sen, the proposed distribution represents an annualised yield of 7.56 per cent.
As at December 31, 2007, Starhill Gallery and Lot 10 had occupancy rates of 96 per cent and 98 per cent, respectively.
The Trust was established on November 18, 2005. It has a property portfolio comprising three prime properties situated in the heart of Kuala Lumpur’s Golden Triangle, namely Starhill Gallery and the adjoining JW Marriott Hotel Kuala Lumpur, and 137 parcels and two accessory parcels of retail, office, storage and other spaces within Lot 10 Shopping Centre.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
STARHILL Real Estate Investment Trust (Starhill REIT) reported a revenue of RM53.58 million for the six months ended December 31, 2007, an increase by 11.8 per cent over the RM47.94 million posted in the same period of 2006.
Net income for the period grew to RM40.11 million compared to RM35.00 million, an increase of 14.6 per cent.
The improved performance was due mainly to rentals received from The Residences at The Ritz-Carlton, Kuala Lumpur, coupled with higher rental rates received from the renewal of existing tenancies and the commencement of new tenancies at Starhill Gallery and Lot 10 Shopping Centre.
“Starhill REIT’s portfolio of high-end, prime properties continued to register strong performance for the first half of the 2008 financial year, underscoring the high quality of these assets and their ability to generate solid and sustainable levels of rental income for the Trust,” said Tan Sri Dr Francis Yeoh Sock Ping, in a statement today.
He is the chief executive officer of Pintar Projek Sdn Bhd, the manager of the Trust.
A distribution of 3.4025 sen per unit, representing some 100 per cent of Starhill REIT’s income after taxation for the six-month period ended December 31, 2007, was also recommended by Pintar Projek.
Based on Starhill REIT’s five-day volume weighted average unit price of 90 sen, the proposed distribution represents an annualised yield of 7.56 per cent.
As at December 31, 2007, Starhill Gallery and Lot 10 had occupancy rates of 96 per cent and 98 per cent, respectively.
The Trust was established on November 18, 2005. It has a property portfolio comprising three prime properties situated in the heart of Kuala Lumpur’s Golden Triangle, namely Starhill Gallery and the adjoining JW Marriott Hotel Kuala Lumpur, and 137 parcels and two accessory parcels of retail, office, storage and other spaces within Lot 10 Shopping Centre.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Public Bank to launch wholesale money market fund
BusinessTimes
PUBLIC Bank Bhd will launch a wholesale Islamic money market fund called PB Islamic Cash Plus Fund (PBICPF) on January 30.
The new fund will be managed by its wholly-owned subsidiary, Public Mutual.
"PBICPF is a low-risk Islamic money market fund and is suitable for sophisticated investors who wish to enjoy liquidity and current income, while maintaining capital stability," said Public Mutual chairman Tan Sri Teh Hong Piow in a statement released yesterday.
He said the fund's investment focus is geared towards short-term Islamic money market instruments that are highly liquidated and mature within one year.
Teh said PBICPF targets individuals whose total net personal assets exceed RM3 million or companies with total net assets exceeding RM10 million, and unit trust schemes.
"The fund provides a safe option for sophisticated investors with low tolerance to risk and those wishing to park their monies on a short-term basis," he said.
The minimum initial investment is RM250,000, while the minimum additional investment is RM100,000. PBICPF is issued at RM1 per unit.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PUBLIC Bank Bhd will launch a wholesale Islamic money market fund called PB Islamic Cash Plus Fund (PBICPF) on January 30.
The new fund will be managed by its wholly-owned subsidiary, Public Mutual.
"PBICPF is a low-risk Islamic money market fund and is suitable for sophisticated investors who wish to enjoy liquidity and current income, while maintaining capital stability," said Public Mutual chairman Tan Sri Teh Hong Piow in a statement released yesterday.
He said the fund's investment focus is geared towards short-term Islamic money market instruments that are highly liquidated and mature within one year.
Teh said PBICPF targets individuals whose total net personal assets exceed RM3 million or companies with total net assets exceeding RM10 million, and unit trust schemes.
"The fund provides a safe option for sophisticated investors with low tolerance to risk and those wishing to park their monies on a short-term basis," he said.
The minimum initial investment is RM250,000, while the minimum additional investment is RM100,000. PBICPF is issued at RM1 per unit.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, January 24, 2008
Public Bank, ING launch PB-ING Baraka Commodities Plan
TheEdge
KUALA LUMPUR: Public Bank Bhd and ING Insurance Bhd have unveiled the PB-ING Baraka Commodities Plan in a move to diversify investment opportunities, and signifying the start to their 10-year strategic regional alliance forged recently.
In a joint statement on Jan 21, the two companies said the inaugural product jointly developed by them was a powerful capital guaranteed investment-linked plan that aimed to provide maximum capital growth and potential high performance bonus within three years.
The plan is invested in the Top 30 high-performing global stocks in basic materials and oil and gas sectors selected from the Dow Jones Islamic Markets World Index Universe. Public Bank and ING said these stocks were actively managed and re-balanced each quarter to maximise performance potential.
PB-ING Baraka Commodities Plan is a single premium plan with a minimum premium amount of RM30,000. Entry age is from 30 days to 65 years of age. The plan is open for subscription for an eight-week period starting from Jan 18, 2008, till March 18, 2008.
In the fourth quarter of 2007, Public Bank and ING sealed a 10-year strategic regional alliance to tap long term regional opportunities by jointly developing the bancassurance business, Takaful business and various other services such as wealth management, joint promotional activities and co-branded credit card services.
Public Bank managing director Datuk Seri Tay Ah Lek said the ever-increasing demand for basic materials, especially from fast developing nations in Asia, the Middle East and Eastern Europe, was expected to sustain high commodity prices in the foreseeable future.
“Coupled with the strong support for oil and gas prices, the PB-ING Baraka Commodities Plan is indeed an attractive investment option for all types of investors,” he added. It will allocate 95% of the premium paid as Invested Capital, apart from offering life insurance protection against death and total permanent disability.
The plan will be sold exclusively by Public Bank and underwritten by ING. The investments will be managed by the investment arm of ING Group, ING Investment Management (IIM) through its local affiliate, ING Funds Bhd (IFB), which had over RM2 billion assets under management as at end November 2007.
Dr Nirmala Menon, president and chief executive officer of ING Insurance Bhd, said: “The PB-ING Baraka Commodities Plan provides us with a great start to our strategic alliance. This plan allows us to tap into market segments that we have not captured while enabling Public Bank to widen its offerings for its customers.”
“Together with Public Bank, ING is already lining up many more products that are specially developed for the bank’s wide and varied clientele. We hope to be able to leverage on Public Bank’s multiple marketing channels to expand our bancassurance offerings further,” she said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Public Bank Bhd and ING Insurance Bhd have unveiled the PB-ING Baraka Commodities Plan in a move to diversify investment opportunities, and signifying the start to their 10-year strategic regional alliance forged recently.
In a joint statement on Jan 21, the two companies said the inaugural product jointly developed by them was a powerful capital guaranteed investment-linked plan that aimed to provide maximum capital growth and potential high performance bonus within three years.
The plan is invested in the Top 30 high-performing global stocks in basic materials and oil and gas sectors selected from the Dow Jones Islamic Markets World Index Universe. Public Bank and ING said these stocks were actively managed and re-balanced each quarter to maximise performance potential.
PB-ING Baraka Commodities Plan is a single premium plan with a minimum premium amount of RM30,000. Entry age is from 30 days to 65 years of age. The plan is open for subscription for an eight-week period starting from Jan 18, 2008, till March 18, 2008.
In the fourth quarter of 2007, Public Bank and ING sealed a 10-year strategic regional alliance to tap long term regional opportunities by jointly developing the bancassurance business, Takaful business and various other services such as wealth management, joint promotional activities and co-branded credit card services.
Public Bank managing director Datuk Seri Tay Ah Lek said the ever-increasing demand for basic materials, especially from fast developing nations in Asia, the Middle East and Eastern Europe, was expected to sustain high commodity prices in the foreseeable future.
“Coupled with the strong support for oil and gas prices, the PB-ING Baraka Commodities Plan is indeed an attractive investment option for all types of investors,” he added. It will allocate 95% of the premium paid as Invested Capital, apart from offering life insurance protection against death and total permanent disability.
The plan will be sold exclusively by Public Bank and underwritten by ING. The investments will be managed by the investment arm of ING Group, ING Investment Management (IIM) through its local affiliate, ING Funds Bhd (IFB), which had over RM2 billion assets under management as at end November 2007.
Dr Nirmala Menon, president and chief executive officer of ING Insurance Bhd, said: “The PB-ING Baraka Commodities Plan provides us with a great start to our strategic alliance. This plan allows us to tap into market segments that we have not captured while enabling Public Bank to widen its offerings for its customers.”
“Together with Public Bank, ING is already lining up many more products that are specially developed for the bank’s wide and varied clientele. We hope to be able to leverage on Public Bank’s multiple marketing channels to expand our bancassurance offerings further,” she said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Tuesday, January 22, 2008
ING declares 0.5 sen income distribution
BusinessTimes
ING Funds Bhd has declared a 0.5 sen income distribution for its ING Global Real Estate fund for the quarter ended December 31 2007. The distribution represents a distribution yield of one per cent based on the par value of 50 sen. The fund has distributed a total of 3.5 sen since its launch in July 2006, which is equivalent to a seven per cent yield. ING Global Real Estate unitholders as at January 21 2008 will be entitled to the distribution.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
ING Funds Bhd has declared a 0.5 sen income distribution for its ING Global Real Estate fund for the quarter ended December 31 2007. The distribution represents a distribution yield of one per cent based on the par value of 50 sen. The fund has distributed a total of 3.5 sen since its launch in July 2006, which is equivalent to a seven per cent yield. ING Global Real Estate unitholders as at January 21 2008 will be entitled to the distribution.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Malaysia to float RM840m Islamic ETF
BusinessTimes
THE Government is floating a RM840 million syariah-compliant exchange-traded fund (ETF) on Bursa Malaysia next week, which will help in its plan to gradually sell down stakes in state-controlled firms.
"There are more coming. This is a good critical amount to start off with, but we will add on more," Second Finance Minister Tan Sri Nor Mohamed Yakcop said at the prospectus launch in Kuala Lumpur yesterday.
The government has planned to set up an ETF worth RM3.5 billion, and Nor Mohamed said there could be another one within this year.
He said Malaysia will use a combination of methods to gradually cut its stake in government-linked corporations (GLC), including selling directly in the market, through the setting up of ETF, or by selling bonds that are convertible into shares in the GLCs.
"There is no particular benchmark of reduction as such (as to how much shares in GLCs that the government plans to sell down)," the minister said.
"We want to help improve liquidity and we need to create the vibrancy and robustness of the market," he added. ETF is essentially a unit trust fund that is listed and traded on a stock exchange and designed to track the performance of an index.
The RM840 million MyETF Dow Jones Islamic Market Malaysia Titan 25 (MyETF-DJIM 25) is Asia's first Islamic ETF, giving investors immediate exposure to 25 leading Malaysian stocks. It will be managed by i-VCAP Management Sdn Bhd, a wholly-owned subsidiary of state-owned fund manager Valuecap Sdn Bhd.
"Despite the general (negative) sentiment on the market now, the product itself is a good one. This one particularly draws on the strength of Malaysia market," said OSK Investment Bank Bhd's head of derivatives and structure product Foo Keah Keat.
Plantation shares like Sime Darby and IOI Corp make up more than half of the index that the fund tracks. Other members of the index are major stocks in construction and property-related, oil and gas, as well as telecommunications.
"At OSK, we are bullish on sectors like plantation and construction. So this ETF is also a good sector play," Foo said.
Seven GLCs, including Khazanah Nasional Bhd and Permodalan Nasional Bhd, will each provide RM120 million worth of the underlying basket of shares. In exchange, the GLCs will each subscribe for 100 million units of the ETF. The remaining 140 million units are reserved for retail and institutional investors. Investors can subscribe for the units from the participating dealers, from today until January 28.
The ETF is scheduled to be listed on January 31.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
THE Government is floating a RM840 million syariah-compliant exchange-traded fund (ETF) on Bursa Malaysia next week, which will help in its plan to gradually sell down stakes in state-controlled firms.
"There are more coming. This is a good critical amount to start off with, but we will add on more," Second Finance Minister Tan Sri Nor Mohamed Yakcop said at the prospectus launch in Kuala Lumpur yesterday.
The government has planned to set up an ETF worth RM3.5 billion, and Nor Mohamed said there could be another one within this year.
He said Malaysia will use a combination of methods to gradually cut its stake in government-linked corporations (GLC), including selling directly in the market, through the setting up of ETF, or by selling bonds that are convertible into shares in the GLCs.
"There is no particular benchmark of reduction as such (as to how much shares in GLCs that the government plans to sell down)," the minister said.
"We want to help improve liquidity and we need to create the vibrancy and robustness of the market," he added. ETF is essentially a unit trust fund that is listed and traded on a stock exchange and designed to track the performance of an index.
The RM840 million MyETF Dow Jones Islamic Market Malaysia Titan 25 (MyETF-DJIM 25) is Asia's first Islamic ETF, giving investors immediate exposure to 25 leading Malaysian stocks. It will be managed by i-VCAP Management Sdn Bhd, a wholly-owned subsidiary of state-owned fund manager Valuecap Sdn Bhd.
"Despite the general (negative) sentiment on the market now, the product itself is a good one. This one particularly draws on the strength of Malaysia market," said OSK Investment Bank Bhd's head of derivatives and structure product Foo Keah Keat.
Plantation shares like Sime Darby and IOI Corp make up more than half of the index that the fund tracks. Other members of the index are major stocks in construction and property-related, oil and gas, as well as telecommunications.
"At OSK, we are bullish on sectors like plantation and construction. So this ETF is also a good sector play," Foo said.
Seven GLCs, including Khazanah Nasional Bhd and Permodalan Nasional Bhd, will each provide RM120 million worth of the underlying basket of shares. In exchange, the GLCs will each subscribe for 100 million units of the ETF. The remaining 140 million units are reserved for retail and institutional investors. Investors can subscribe for the units from the participating dealers, from today until January 28.
The ETF is scheduled to be listed on January 31.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
CIMB: Time to invest in the Middle East, North Africa
TheEdge
KUALA LUMPUR: The Middle East and North Africa (MENA) region, long overlooked by foreign investors, is ripe for the picking, according to CIMB-Principal Asset Management Bhd and Societe Generale Asset Management (SocGen).
Having benefited from the oil boom, countries in the region, including the United Arab Emirates, Oman, Bahrain, Egypt and Jordan, are now trying to convince investors there is more to the destination than just oil, spending their wealth in sectors such as infrastructure, tourism and on the creation of financial centres.
“The MENA region is attractive for investors due to its strong economic backdrop, uncorrelated markets and attractive valuations due to strong corporate earnings from high oil prices,” SocGen emerging market equities fund manager Mark Krombas said.
MENA economies grew more than 5% in each of the past three years, with Qatar’s gross domestic product (GDP) rising the fastest and emerging as a country with one of the highest GDP per capita in the world, he said.
Krombas added that SocGen’s Arab Fund saw a 60% rate of return last year, against 17.8% in 2006, and due to the region’s low correlation to the rest of the world’s markets, the region was not expected to be heavily impacted by global volatility.
On the region’s other growth sectors, he said the Gulf Cooperation Countries (GCC) had allocated an estimated US$1.5 trillion (RM4.95 trillion) for domestic infrastructure programmes over the next five years, while GDP contributions from the agriculture, construction, manufacturing and services sectors were expected to rise between 7% and 8% in Qatar, Bahrain and Saudi Arabia last year.
There was also a strong demand for consumer and financial products and the region’s young population was expected to drive demand for the real estate sector, he said.
He added while investors perceived the region as a high-risk destination due to geo-political issues, risk levels were relatively low in reality.
He said the Economist Intelligence Unit had assigned an “A” rating for Oman, Kuwait, Bahrain and the UAE, “BBB” for Qatar and Saudi Arabia, “BB” for Tunisia, Egypt and Algeria and “B” for Jordan under its country risk ratings, where Malaysia, India were assigned “BBB” and China “B”.
Speaking at a media briefing here yesterday, CIMB-Principal chief executive Datuk Noripah Kamso also said the company expected to launch an investment fund for the MENA region within the first half of this year.
“We are very interested for the Malaysian investing public to take advantage of this destination,” she said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The Middle East and North Africa (MENA) region, long overlooked by foreign investors, is ripe for the picking, according to CIMB-Principal Asset Management Bhd and Societe Generale Asset Management (SocGen).
Having benefited from the oil boom, countries in the region, including the United Arab Emirates, Oman, Bahrain, Egypt and Jordan, are now trying to convince investors there is more to the destination than just oil, spending their wealth in sectors such as infrastructure, tourism and on the creation of financial centres.
“The MENA region is attractive for investors due to its strong economic backdrop, uncorrelated markets and attractive valuations due to strong corporate earnings from high oil prices,” SocGen emerging market equities fund manager Mark Krombas said.
MENA economies grew more than 5% in each of the past three years, with Qatar’s gross domestic product (GDP) rising the fastest and emerging as a country with one of the highest GDP per capita in the world, he said.
Krombas added that SocGen’s Arab Fund saw a 60% rate of return last year, against 17.8% in 2006, and due to the region’s low correlation to the rest of the world’s markets, the region was not expected to be heavily impacted by global volatility.
On the region’s other growth sectors, he said the Gulf Cooperation Countries (GCC) had allocated an estimated US$1.5 trillion (RM4.95 trillion) for domestic infrastructure programmes over the next five years, while GDP contributions from the agriculture, construction, manufacturing and services sectors were expected to rise between 7% and 8% in Qatar, Bahrain and Saudi Arabia last year.
There was also a strong demand for consumer and financial products and the region’s young population was expected to drive demand for the real estate sector, he said.
He added while investors perceived the region as a high-risk destination due to geo-political issues, risk levels were relatively low in reality.
He said the Economist Intelligence Unit had assigned an “A” rating for Oman, Kuwait, Bahrain and the UAE, “BBB” for Qatar and Saudi Arabia, “BB” for Tunisia, Egypt and Algeria and “B” for Jordan under its country risk ratings, where Malaysia, India were assigned “BBB” and China “B”.
Speaking at a media briefing here yesterday, CIMB-Principal chief executive Datuk Noripah Kamso also said the company expected to launch an investment fund for the MENA region within the first half of this year.
“We are very interested for the Malaysian investing public to take advantage of this destination,” she said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Bonds likely to lose shine in 2H
TheEdge
KUALA LUMPUR: Bond yields will likely ease in the second half of 2008 as inflationary pressures and a looming global economic downturn take the shine off the domestic bond market, analysts said.
“In the near term, the bond market will remain stable, but we believe bond yields may come under some pressure from rising domestic inflation in the second half of the year,” OSK Investment Bank Bhd director and head of treasury Yeo Chin Tiong told The Edge Financial Daily.
The Malaysian Institute of Economic Research last week projected an inflation rate of 3.2% this year on expectations of petrol subsidy adjustments.
Malaysian Rating Corporation (MARC), however, expects inflationary pressures to have a positive effect on bond yields, arguing that investors will continue pricing in inflation, which would push up yields.
“This will entail rising bond yields in anticipation of higher CPI (consumer price index) readings,” the ratings agency said in its 2008 Bond Market and Ringgit Outlook report.
However, it said rising bond yields and the threat of a slowdown in the global economy would provide conflicting signals and present a dilemma for market participants, and to some extent, the central bank.
Bank Negara Malaysia has advocated an accommodative monetary policy, keeping interest rates at 3.5% to curb inflation and, at the same time, encourage economic growth.
Yield outcome will also hinge on capital outflows. “The yield curve depressed as foreign inflows came in 2007 due to the strengthening ringgit. If there is a reversal of capital outflows this year, it would influence the yield curve,” said MARC senior vice president of fixed income research Adi Asri Baharom.
Stricken yields could dampen investor interest in bonds as an investment vehicle, Yeo said.
“Given the current generally low yield environment, the bond market may not be that attractive compared with other asset classes, as credit risk remains a major issue this year.”
Adi, however, said: “I don’t think interest (in bonds) will die down, we’re seeing a lot of foreign entities buying ringgit bonds because of the high liquidity in the system.”
Rating Agency Malaysia (RAM) chief economist Dr Yeah Kim Leng sees a strong uptake from local pension and savings funds, and insurance and asset management companies seeking to park their funds in long-term assets.
“Long-term funds are looking to diversify into emerging markets due to the weakening US dollar. Middle Eastern investors, sovereign wealth funds from Singapore and investors from China, would potentially be interested,” he said.
The general consensus among analysts is that investors this year are more risk averse; hence targeting ‘‘quality’’ issues revolving around specific companies and projects. “People will continue to want quality issues, namely bonds rated AA and above,” Adi said.
“As long as a company is healthy and has good projects, it will be able to secure funding from the bond market,” said Yeah.
MARC expects a slowdown in private debt security (PDS) issuances to RM45 billion in 2008 from the record RM54 billion done last year.
“We expect between RM40 billion and RM50 billion worth of issues this year, based on strong private finance initiative (PFI) funding requirements and M&A (merger and acquisition) activity continuing among private companies,” said Yeah.
Both MARC and RAM believe interest rates would likely remain stable this year, subject to the state of the global economy.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Bond yields will likely ease in the second half of 2008 as inflationary pressures and a looming global economic downturn take the shine off the domestic bond market, analysts said.
“In the near term, the bond market will remain stable, but we believe bond yields may come under some pressure from rising domestic inflation in the second half of the year,” OSK Investment Bank Bhd director and head of treasury Yeo Chin Tiong told The Edge Financial Daily.
The Malaysian Institute of Economic Research last week projected an inflation rate of 3.2% this year on expectations of petrol subsidy adjustments.
Malaysian Rating Corporation (MARC), however, expects inflationary pressures to have a positive effect on bond yields, arguing that investors will continue pricing in inflation, which would push up yields.
“This will entail rising bond yields in anticipation of higher CPI (consumer price index) readings,” the ratings agency said in its 2008 Bond Market and Ringgit Outlook report.
However, it said rising bond yields and the threat of a slowdown in the global economy would provide conflicting signals and present a dilemma for market participants, and to some extent, the central bank.
Bank Negara Malaysia has advocated an accommodative monetary policy, keeping interest rates at 3.5% to curb inflation and, at the same time, encourage economic growth.
Yield outcome will also hinge on capital outflows. “The yield curve depressed as foreign inflows came in 2007 due to the strengthening ringgit. If there is a reversal of capital outflows this year, it would influence the yield curve,” said MARC senior vice president of fixed income research Adi Asri Baharom.
Stricken yields could dampen investor interest in bonds as an investment vehicle, Yeo said.
“Given the current generally low yield environment, the bond market may not be that attractive compared with other asset classes, as credit risk remains a major issue this year.”
Adi, however, said: “I don’t think interest (in bonds) will die down, we’re seeing a lot of foreign entities buying ringgit bonds because of the high liquidity in the system.”
Rating Agency Malaysia (RAM) chief economist Dr Yeah Kim Leng sees a strong uptake from local pension and savings funds, and insurance and asset management companies seeking to park their funds in long-term assets.
“Long-term funds are looking to diversify into emerging markets due to the weakening US dollar. Middle Eastern investors, sovereign wealth funds from Singapore and investors from China, would potentially be interested,” he said.
The general consensus among analysts is that investors this year are more risk averse; hence targeting ‘‘quality’’ issues revolving around specific companies and projects. “People will continue to want quality issues, namely bonds rated AA and above,” Adi said.
“As long as a company is healthy and has good projects, it will be able to secure funding from the bond market,” said Yeah.
MARC expects a slowdown in private debt security (PDS) issuances to RM45 billion in 2008 from the record RM54 billion done last year.
“We expect between RM40 billion and RM50 billion worth of issues this year, based on strong private finance initiative (PFI) funding requirements and M&A (merger and acquisition) activity continuing among private companies,” said Yeah.
Both MARC and RAM believe interest rates would likely remain stable this year, subject to the state of the global economy.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Unit trust industry to continue good showing
TheEdge
KUALA LUMPUR: The Malaysian unit trust industry will continue its sterling performance this year as a result of ample liquidity in the banking system, according to unit trust companies.
HLG Unit Trust Bhd executive director and acting chief executive officer Teo Chang Seng told The Edge Financial Daily that the wealth management unit of banks had been entrusted with higher fees income from investment services.
“All banks are looking for suitable products to turn the deposit base into fees base asset under management while helping their customers to achieve their financial objectives,” he said.
He said front load charges were lower now and it cost less for customers to invest in unit trust funds in view of more products that invested in the local bourse or overseas markets with different risk profiles and investment objectives.
On whether the time was right to launch more funds because of the current bullish local stock market, Teo said: “We have to recognise that the 2007 super bull is unlikely to repeat this year.
The US is showing signs of slowing and has its own set of challenges.
“We prefer investments in diversified large-cap blue chip global ex-US, particularly investments which are more resilient in current conditions such as value investment.”
Asked about product trends among the investing public, he said Malaysian investors had diversified their investments globally over the past two years after Bank Negara Malaysia relaxed restrictions on investing overseas.
“Investors are becoming more sophisticated. Past one-and-a-half years was a super bull year with investors focusing on return,” he said.
Teo said investment risks must be evaluated on total risk and reward basis as the market may turn volatile, and investments in certain high beta markets had higher downside risk.
ING Funds Bhd chief executive officer Steve Ong said investors could make more accurate investment decisions with the introduction of the single pricing regime in July 2006, which had made front-end charges more transparent.
He said the current low interest rate environment and high liquidity had resulted in unit trust funds becoming alternative investment vehicles for the mass retail market in Malaysia.
“We still think the market offers (local investors) good investment for high dividend yield stocks although valuation has gone up,” he said.
He said ING used the portfolio approach to identify a comprehensive range of asset classes that would provide investors with adequate portfolio diversification and more consistent returns.
Ong said product trends were driven by investment opportunities as the market cycle changed from time to time, and the critical component of a product strategy was re-marketing existing funds.
“Our strategy is to have at least 50% of our funds invested locally in view of exchange rate fluctuations,” he said. He said current local investment themes were plantation, oil and gas, and infrastructure while globally, the company was bullish on selected markets such as China.
“We are looking at picking up selected global growth thematics that are experiencing high growth of between 10% and 12% annually like the energy and biotechnology sectors,” he said.
Meanwhile, Inter-Pacific Asset Management Sdn Bhd chief executive officer Paul Khoo believed that unit trust companies could sustain the growth rate for new investments in 2008, as demand for new innovative funds would remain robust with investors continuing to demand diversification.
He expected the upfront fee or service charges in Malaysia to moderate further from 5% to 6% currently, as most mutual funds in developed markets did not charge upfront fees.
He said lower fees would translate into higher investment value and generate more returns for investors when the fund was performing.
Khoo said external factors such as economic growth and inflation trends would drive launches of investment products this year, and expected more defensive funds such as income and value portfolios with the anticipated slower global growth and cost-push inflation.
“Alternative asset classes such as commodities and foreign currencies should be part of investors’ portfolio for diversification. I would expect more diversification across various asset classes from the current holdings in cash, property, stocks and bonds,” he said.
Asked about the funds’ investment themes for 2008 and beyond, Khoo said industry and sector funds such as Asian consumer, Asian infrastructure and commodities would be very popular with demand for more goods and services from China and India.
However, he said Inter-Pacific did not have any immediate plan to launch a China-focused fund as Chinese companies were currently fairly rich in valuation.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The Malaysian unit trust industry will continue its sterling performance this year as a result of ample liquidity in the banking system, according to unit trust companies.
HLG Unit Trust Bhd executive director and acting chief executive officer Teo Chang Seng told The Edge Financial Daily that the wealth management unit of banks had been entrusted with higher fees income from investment services.
“All banks are looking for suitable products to turn the deposit base into fees base asset under management while helping their customers to achieve their financial objectives,” he said.
He said front load charges were lower now and it cost less for customers to invest in unit trust funds in view of more products that invested in the local bourse or overseas markets with different risk profiles and investment objectives.
On whether the time was right to launch more funds because of the current bullish local stock market, Teo said: “We have to recognise that the 2007 super bull is unlikely to repeat this year.
The US is showing signs of slowing and has its own set of challenges.
“We prefer investments in diversified large-cap blue chip global ex-US, particularly investments which are more resilient in current conditions such as value investment.”
Asked about product trends among the investing public, he said Malaysian investors had diversified their investments globally over the past two years after Bank Negara Malaysia relaxed restrictions on investing overseas.
“Investors are becoming more sophisticated. Past one-and-a-half years was a super bull year with investors focusing on return,” he said.
Teo said investment risks must be evaluated on total risk and reward basis as the market may turn volatile, and investments in certain high beta markets had higher downside risk.
ING Funds Bhd chief executive officer Steve Ong said investors could make more accurate investment decisions with the introduction of the single pricing regime in July 2006, which had made front-end charges more transparent.
He said the current low interest rate environment and high liquidity had resulted in unit trust funds becoming alternative investment vehicles for the mass retail market in Malaysia.
“We still think the market offers (local investors) good investment for high dividend yield stocks although valuation has gone up,” he said.
He said ING used the portfolio approach to identify a comprehensive range of asset classes that would provide investors with adequate portfolio diversification and more consistent returns.
Ong said product trends were driven by investment opportunities as the market cycle changed from time to time, and the critical component of a product strategy was re-marketing existing funds.
“Our strategy is to have at least 50% of our funds invested locally in view of exchange rate fluctuations,” he said. He said current local investment themes were plantation, oil and gas, and infrastructure while globally, the company was bullish on selected markets such as China.
“We are looking at picking up selected global growth thematics that are experiencing high growth of between 10% and 12% annually like the energy and biotechnology sectors,” he said.
Meanwhile, Inter-Pacific Asset Management Sdn Bhd chief executive officer Paul Khoo believed that unit trust companies could sustain the growth rate for new investments in 2008, as demand for new innovative funds would remain robust with investors continuing to demand diversification.
He expected the upfront fee or service charges in Malaysia to moderate further from 5% to 6% currently, as most mutual funds in developed markets did not charge upfront fees.
He said lower fees would translate into higher investment value and generate more returns for investors when the fund was performing.
Khoo said external factors such as economic growth and inflation trends would drive launches of investment products this year, and expected more defensive funds such as income and value portfolios with the anticipated slower global growth and cost-push inflation.
“Alternative asset classes such as commodities and foreign currencies should be part of investors’ portfolio for diversification. I would expect more diversification across various asset classes from the current holdings in cash, property, stocks and bonds,” he said.
Asked about the funds’ investment themes for 2008 and beyond, Khoo said industry and sector funds such as Asian consumer, Asian infrastructure and commodities would be very popular with demand for more goods and services from China and India.
However, he said Inter-Pacific did not have any immediate plan to launch a China-focused fund as Chinese companies were currently fairly rich in valuation.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Pension schemes in demand
TheStar
KUALA LUMPUR: Demand for pension schemes in Asia-Pacific is expected to gain momentum, fuelled by rapid demographic and socio-economic changes.
Allianz Asia-Pacific regional general manager (life and health) Craig Ellis said these changes included an ageing population resulting from decreasing fertility and higher life expectancy.
“The main reasons for the decline in fertility are economic growth, industrialisation, urbanisation and birth control.
“The birth rate has declined by 56% over the last 25 years, and the median age in Asia is expected to increase from 28 years now to 40 by 2050.
“This has put a strain in the development of pension schemes in the region and led to increasing demand for such schemes as people want to have a better life and less financial constraint after their retirement,” he said in an interview.
Ellis was sharing the latest findings by Allianz Global Investors regarding pension systems in nine markets, namely Australia, China, Hong Kong, India, Japan, Singapore, South Korea, Taiwan and Thailand.
Japan and South Korea would be among the oldest countries globally by 2050 and hence foresee the rapid growth of pension products in the region, he said, adding that pension assets in Asia-Pacific as a whole would see an annual growth of 9.2%, from about 1.4 trillion euros to 3.1 trillion euros in 2015.
Ellis said Malaysia was also experiencing ageing population and higher life expectancy and there was a potential market for pension products.
Recently, Bank Negara deputy governor Datuk Zamani Abdul Ghani said the proportion of Malaysians aged above 60 was expected to more than double from 7% of the total population in 2000 to 16% in 2020, and that life expectancy was expected to rise further to 79 years for females and 75 years for males with improved living standards.
Zamani said one fifth of Malaysians were expected to be over 60 years old by 2040 and, during the same period, the ratio of the population between the ages of 15 and 60 was expected to rise at a slower rate until 2020 and then fall to 63% in 2040.
The findings by Allianz also showed that the trend towards defined contribution schemes (similar to EPF in Malaysia) had accelerated strongly over the years and pension assets in some Asian countries were being increasingly outsourced to private companies for better returns.
In Asia-Pacific, Allianz has a presence in 15 markets, offering its various products and services like property and casualty insurance, life and health insurance, asset management and banking.
For the first nine months ended Sept 30, Allianz's operating profit in Asia-Pacific more than doubled to 553 million euros compared with the previous corresponding period. It registered revenue of 6.4 billion euros.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Demand for pension schemes in Asia-Pacific is expected to gain momentum, fuelled by rapid demographic and socio-economic changes.
Allianz Asia-Pacific regional general manager (life and health) Craig Ellis said these changes included an ageing population resulting from decreasing fertility and higher life expectancy.
“The main reasons for the decline in fertility are economic growth, industrialisation, urbanisation and birth control.
“The birth rate has declined by 56% over the last 25 years, and the median age in Asia is expected to increase from 28 years now to 40 by 2050.
“This has put a strain in the development of pension schemes in the region and led to increasing demand for such schemes as people want to have a better life and less financial constraint after their retirement,” he said in an interview.
Ellis was sharing the latest findings by Allianz Global Investors regarding pension systems in nine markets, namely Australia, China, Hong Kong, India, Japan, Singapore, South Korea, Taiwan and Thailand.
Japan and South Korea would be among the oldest countries globally by 2050 and hence foresee the rapid growth of pension products in the region, he said, adding that pension assets in Asia-Pacific as a whole would see an annual growth of 9.2%, from about 1.4 trillion euros to 3.1 trillion euros in 2015.
Ellis said Malaysia was also experiencing ageing population and higher life expectancy and there was a potential market for pension products.
Recently, Bank Negara deputy governor Datuk Zamani Abdul Ghani said the proportion of Malaysians aged above 60 was expected to more than double from 7% of the total population in 2000 to 16% in 2020, and that life expectancy was expected to rise further to 79 years for females and 75 years for males with improved living standards.
Zamani said one fifth of Malaysians were expected to be over 60 years old by 2040 and, during the same period, the ratio of the population between the ages of 15 and 60 was expected to rise at a slower rate until 2020 and then fall to 63% in 2040.
The findings by Allianz also showed that the trend towards defined contribution schemes (similar to EPF in Malaysia) had accelerated strongly over the years and pension assets in some Asian countries were being increasingly outsourced to private companies for better returns.
In Asia-Pacific, Allianz has a presence in 15 markets, offering its various products and services like property and casualty insurance, life and health insurance, asset management and banking.
For the first nine months ended Sept 30, Allianz's operating profit in Asia-Pacific more than doubled to 553 million euros compared with the previous corresponding period. It registered revenue of 6.4 billion euros.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Prudential launches new PRUlink income retirement plan
TheStar
KUALA LUMPUR: Prudential Assurance Malaysia Bhd is targeting individuals aged 35 to 60 years for its new PRUlink income retirement plan.
“This is the first single premium investment-linked plan in the market designed to ensure that there is a guaranteed monthly income during retirement life,” said chief executive officer Tan Kar Hor.
At the recent launch of PRUlink income, he said the product presented an opportunity for Malaysians to invest just a one-time premium to be able to reap the benefits after retirement.
The minimum single premium is RM10,000, which would be invested for a fixed period ranging from five to 40 years, Tan said.
He said 95% of the single premium paid would be invested in the newly created PRUlink golden equity and bond funds (during accumulation stage) and PRUlink golden managed fund (during payout stage) for a more secured and less volatile retirement investment.
During the payout stage, the customer would receive a stream of guaranteed monthly income over a specified number of years, he added.
Tan said the product ensured higher guaranteed returns, lump sum payout, flexible withdrawals and also covered the customer for misfortunes such as death or total and permanent disability. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Prudential Assurance Malaysia Bhd is targeting individuals aged 35 to 60 years for its new PRUlink income retirement plan.
“This is the first single premium investment-linked plan in the market designed to ensure that there is a guaranteed monthly income during retirement life,” said chief executive officer Tan Kar Hor.
At the recent launch of PRUlink income, he said the product presented an opportunity for Malaysians to invest just a one-time premium to be able to reap the benefits after retirement.
The minimum single premium is RM10,000, which would be invested for a fixed period ranging from five to 40 years, Tan said.
He said 95% of the single premium paid would be invested in the newly created PRUlink golden equity and bond funds (during accumulation stage) and PRUlink golden managed fund (during payout stage) for a more secured and less volatile retirement investment.
During the payout stage, the customer would receive a stream of guaranteed monthly income over a specified number of years, he added.
Tan said the product ensured higher guaranteed returns, lump sum payout, flexible withdrawals and also covered the customer for misfortunes such as death or total and permanent disability. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, January 18, 2008
A shot in the arm for REITs
TheStar
MALAYSIAN real estate investment trusts (REITs) will be getting a shot in the arm in terms of international attention when Sunway City Bhd (SunCity) injects its stable of properties worth a whopping RM3bil to RM4bil into a REIT before year-end.
This may also set a precedent in the valuation and pricing of local REITS making their listing debut on Bursa Malaysia, which could mean that their market capitalisation could start from several billion ringgit instead of around RM1bil currently.
The largest Malaysian REIT in asset size so far is Starhill REIT, whose market capitalisation broke the RM1bil mark at the time of listing in December 2005.
However, SunCity’s REIT, which is yet to be named, is highly likely to surpass Starhill REIT in asset size – if the REIT were to be listed on Bursa Malaysia.
An analyst with a local research house said if this happened, SunCity’s REIT would set a new record that would surely raise the profile of local properties (under trusts) in the eyes of investors, especially foreign institutional investors.
“Starhill REIT set a significant milestone for the local REITs industry by hitting RM1bil, but SunCity’s REIT would propel properties under trusts into the international arena and show foreign investors that Malaysian properties are ready for the big boys’ league,” he said.
SunCity property investment managing director Ngeow Voon Yean said while the group favoured Bursa Malaysia for the listing of its REIT, the company had sought the advice of its investment bankers on whether it was better to list the REIT on the Singapore stock exchange.
“We have not decided where to list the REIT. It will depend on the advice of our investment bankers,” he told StarBiz yesterday.
SunCity told Bursa yesterday it would appoint investment bankers to assist in the listing of its REIT.
Ngeow said SunCity would have between 30% and 40% equity in the REIT post-listing and management control.
“We want to make it clear to everyone that we are not just disposing of our properties. We have a long-term interest in the REIT and will appoint a REIT manager to manage and enhance the properties under the REIT,” he said.
Ngeow said the REIT would be an integrated trust with a variety of properties for various businesses.
“We will have properties ranging from retailing to education and even tourism,” he added.
He said the REIT would grow through property acquisitions channelled from a pipeline of properties under SunCity and third party transactions.
Ngeow said the trust would not discount the possibility of acquiring properties from neighbouring countries.
It would be fair to conclude that the Malaysian REITs industry has grown substantially in a relatively short time.
The first Malaysian REIT, Axis REIT, was listed on Aug 3, 2005 with four properties worth a total of RM296mil.
Today, Malaysian properties under trusts are worth billions of ringgit, irrespective of where they are listed.
A case in point is Starhill REIT. And the impending listing of SunCity’s REIT clearly shows how fast Malaysia’s REITs have progressed within a span of 2½ years.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
MALAYSIAN real estate investment trusts (REITs) will be getting a shot in the arm in terms of international attention when Sunway City Bhd (SunCity) injects its stable of properties worth a whopping RM3bil to RM4bil into a REIT before year-end.
This may also set a precedent in the valuation and pricing of local REITS making their listing debut on Bursa Malaysia, which could mean that their market capitalisation could start from several billion ringgit instead of around RM1bil currently.
The largest Malaysian REIT in asset size so far is Starhill REIT, whose market capitalisation broke the RM1bil mark at the time of listing in December 2005.
However, SunCity’s REIT, which is yet to be named, is highly likely to surpass Starhill REIT in asset size – if the REIT were to be listed on Bursa Malaysia.
An analyst with a local research house said if this happened, SunCity’s REIT would set a new record that would surely raise the profile of local properties (under trusts) in the eyes of investors, especially foreign institutional investors.
“Starhill REIT set a significant milestone for the local REITs industry by hitting RM1bil, but SunCity’s REIT would propel properties under trusts into the international arena and show foreign investors that Malaysian properties are ready for the big boys’ league,” he said.
SunCity property investment managing director Ngeow Voon Yean said while the group favoured Bursa Malaysia for the listing of its REIT, the company had sought the advice of its investment bankers on whether it was better to list the REIT on the Singapore stock exchange.
“We have not decided where to list the REIT. It will depend on the advice of our investment bankers,” he told StarBiz yesterday.
SunCity told Bursa yesterday it would appoint investment bankers to assist in the listing of its REIT.
Ngeow said SunCity would have between 30% and 40% equity in the REIT post-listing and management control.
“We want to make it clear to everyone that we are not just disposing of our properties. We have a long-term interest in the REIT and will appoint a REIT manager to manage and enhance the properties under the REIT,” he said.
Ngeow said the REIT would be an integrated trust with a variety of properties for various businesses.
“We will have properties ranging from retailing to education and even tourism,” he added.
He said the REIT would grow through property acquisitions channelled from a pipeline of properties under SunCity and third party transactions.
Ngeow said the trust would not discount the possibility of acquiring properties from neighbouring countries.
It would be fair to conclude that the Malaysian REITs industry has grown substantially in a relatively short time.
The first Malaysian REIT, Axis REIT, was listed on Aug 3, 2005 with four properties worth a total of RM296mil.
Today, Malaysian properties under trusts are worth billions of ringgit, irrespective of where they are listed.
A case in point is Starhill REIT. And the impending listing of SunCity’s REIT clearly shows how fast Malaysia’s REITs have progressed within a span of 2½ years.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
SunCity to launch RM3.7bil REIT
TheStar
PETALING JAYA: Sunway City Bhd (SunCity) is on track to list the country’s first integrated resort real estate investment trust (REIT) this year but is still undecided between Malaysia and Singapore.
Property investment managing director Ngeow Voon Yean said the company had appointed RHB Investment Bank and Goldman Sachs global joint coordinators for the REIT’s initial public offering (IPO) exercise.
CIMB and UBS Investment Bank have also joined the panel of joint book runners for the IPO exercise.
“We are waiting for our consultants to compile all the necessary details on the IPO structure and the asset valuation before deciding on the venue for the listing,” Ngeow told StarBiz yesterday.
SunCity’s REIT, with assets valued at RM3.7bil, is touted to be the largest in the country and will see the group inject a host of its prime properties into the REIT.
Among the assets to be injected are the Sunway Pyramid Mall and its annexe – totalling 1.7 million sq ft of net lettable space; the 4.8ha Monash University campus, Sunway University College, Sunway Carnival Mall in Penang and Tambun Hypermarket in Ipoh.
Other investment-grade properties to be included are the Sunway Resort Hotel & Spa, Sunway Pyramid Hotel and Menara Sunway.
The investment bankers will kick off the structuring process of SunCity, studying the viability of injecting the company’s investment properties into a REIT and the plan to grow the REIT with the injection of other and future developments.
Ngeow said the floatation would streamline the group’s businesses, allowing the company to focus its attention on property development while divesting long-term yield properties to the REIT. The process is designed to also enhance SunCity’s earnings visibility.
“The outlook for the retail, hospitality and commercial segments is encouraging and SunCity’s assets, backed by its integrated resort development concept, will allow the REIT a diverse yet synergistic earnings base,” Ngeow said.
“By unlocking the value of our assets, SunCity will be in a stronger cash position to expand into the property development business, both locally and abroad. We will also look into developing properties for future injection into the REIT.”
He said SunCity’s track record in investment assets would contribute to the continued growth of the REIT.
The REIT offering is also part of the company’s strategy to maximise shareholders’ value through asset restructuring.
“Setting up the trust will create value for our shareholders through the realignment of assets within the tax efficient REIT structure.”
An analyst with a local brokerage said SunCity provided the best exposure to REIT play, given its reasonably heavy reliance on property investment income and undemanding valuation.
Presently, property investment contributes 40% of the company’s revenue with property development making up the balance.
In a recent research note, Aseambankers said the REIT’s listing would be timely, given the rising capital value of commercial properties in Malaysia.
Moreover, SunCity’s diversification into emerging countries like India, Cambodia and soon, Vietnam and China, will also help it broaden its earnings base and provide new avenues for growth.
SunCity can look forward to a bullish financial year ending June 30, 2008 (FY08), with encouraging sales from the conclusion of en bloc sales of RM171mil for Sunway South Quay condominiums and RM219mil from Sunway Palazzio.
Sales in the first-half of the financial year totalled RM924mil, achieving 68% of its FY08 sales target of RM1.35bil. It also has unbilled sales of RM1.2bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PETALING JAYA: Sunway City Bhd (SunCity) is on track to list the country’s first integrated resort real estate investment trust (REIT) this year but is still undecided between Malaysia and Singapore.
Property investment managing director Ngeow Voon Yean said the company had appointed RHB Investment Bank and Goldman Sachs global joint coordinators for the REIT’s initial public offering (IPO) exercise.
CIMB and UBS Investment Bank have also joined the panel of joint book runners for the IPO exercise.
“We are waiting for our consultants to compile all the necessary details on the IPO structure and the asset valuation before deciding on the venue for the listing,” Ngeow told StarBiz yesterday.
SunCity’s REIT, with assets valued at RM3.7bil, is touted to be the largest in the country and will see the group inject a host of its prime properties into the REIT.
Among the assets to be injected are the Sunway Pyramid Mall and its annexe – totalling 1.7 million sq ft of net lettable space; the 4.8ha Monash University campus, Sunway University College, Sunway Carnival Mall in Penang and Tambun Hypermarket in Ipoh.
Other investment-grade properties to be included are the Sunway Resort Hotel & Spa, Sunway Pyramid Hotel and Menara Sunway.
The investment bankers will kick off the structuring process of SunCity, studying the viability of injecting the company’s investment properties into a REIT and the plan to grow the REIT with the injection of other and future developments.
Ngeow said the floatation would streamline the group’s businesses, allowing the company to focus its attention on property development while divesting long-term yield properties to the REIT. The process is designed to also enhance SunCity’s earnings visibility.
“The outlook for the retail, hospitality and commercial segments is encouraging and SunCity’s assets, backed by its integrated resort development concept, will allow the REIT a diverse yet synergistic earnings base,” Ngeow said.
“By unlocking the value of our assets, SunCity will be in a stronger cash position to expand into the property development business, both locally and abroad. We will also look into developing properties for future injection into the REIT.”
He said SunCity’s track record in investment assets would contribute to the continued growth of the REIT.
The REIT offering is also part of the company’s strategy to maximise shareholders’ value through asset restructuring.
“Setting up the trust will create value for our shareholders through the realignment of assets within the tax efficient REIT structure.”
An analyst with a local brokerage said SunCity provided the best exposure to REIT play, given its reasonably heavy reliance on property investment income and undemanding valuation.
Presently, property investment contributes 40% of the company’s revenue with property development making up the balance.
In a recent research note, Aseambankers said the REIT’s listing would be timely, given the rising capital value of commercial properties in Malaysia.
Moreover, SunCity’s diversification into emerging countries like India, Cambodia and soon, Vietnam and China, will also help it broaden its earnings base and provide new avenues for growth.
SunCity can look forward to a bullish financial year ending June 30, 2008 (FY08), with encouraging sales from the conclusion of en bloc sales of RM171mil for Sunway South Quay condominiums and RM219mil from Sunway Palazzio.
Sales in the first-half of the financial year totalled RM924mil, achieving 68% of its FY08 sales target of RM1.35bil. It also has unbilled sales of RM1.2bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
CIMB-Principal’s first global fund
TheStar
KUALA LUMPUR: CIMB-Principal Asset Management Bhd hopes to launch its first global fund that will invest in the Middle East and North Africa this year, making it the first fund manager in Malaysia to venture into these markets.
This initiative would be collaboration with global asset management company, Societe Generale Asset Management (SGAM).
Chief executive Datuk Noripah Kamso said: “We want to give Malaysian investors the opportunity to invest in these markets, which have usually been overlooked.
“They have great potential partly because of their encouraging economic growth, low correlation to world markets and attractive valuations,'' she told a press conference.
SGAM fund manager (emerging market equities) Mark Krombas said: “Economies in these markets grew more than 5% in each of the past three years and their real gross domestic product (GDP) expanded 6.3% in 2006, one of the region's best years since the 1970s.
“On a per capita basis, the region grew at an average of 4.2% in 2006, the highest level recorded in at least two decades, hence providing attractive investment opportunities in these markets,” he said.
According to Krombas, domestic demand would continue to be the dominant force behind the current growth momentum.
Non-oil GDP growth (including agriculture, construction, manufacturing and services) was expected to have risen between 7% and 8% in Qatar, Bahrain and Saudi Arabia in 2007.
There was also strong demand for consumer and financial products as well as real estate, in addition to the upcoming government investment programmes worth US$1.5 trillion (from 2007 to 2011), he added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: CIMB-Principal Asset Management Bhd hopes to launch its first global fund that will invest in the Middle East and North Africa this year, making it the first fund manager in Malaysia to venture into these markets.
This initiative would be collaboration with global asset management company, Societe Generale Asset Management (SGAM).
Chief executive Datuk Noripah Kamso said: “We want to give Malaysian investors the opportunity to invest in these markets, which have usually been overlooked.
“They have great potential partly because of their encouraging economic growth, low correlation to world markets and attractive valuations,'' she told a press conference.
SGAM fund manager (emerging market equities) Mark Krombas said: “Economies in these markets grew more than 5% in each of the past three years and their real gross domestic product (GDP) expanded 6.3% in 2006, one of the region's best years since the 1970s.
“On a per capita basis, the region grew at an average of 4.2% in 2006, the highest level recorded in at least two decades, hence providing attractive investment opportunities in these markets,” he said.
According to Krombas, domestic demand would continue to be the dominant force behind the current growth momentum.
Non-oil GDP growth (including agriculture, construction, manufacturing and services) was expected to have risen between 7% and 8% in Qatar, Bahrain and Saudi Arabia in 2007.
There was also strong demand for consumer and financial products as well as real estate, in addition to the upcoming government investment programmes worth US$1.5 trillion (from 2007 to 2011), he added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, January 17, 2008
MAAKL Mutual launches new fund
TheStar
KUALA LUMPUR: MAAKL Mutual Bhd has launched a regional fund called MAAKL Shariah Asia-Pacific Fund.
MAAKL said in a statement the new fund would focus on markets such as China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Taiwan, Thailand and Australia.
Chief executive officer and executive director Wong Boon Choy said the new fund was designed to invest up to a maximum of 98% of its net asset value in Asia-Pacific syariah-compliant equities and equity-related securities.
“Additionally, the fund will invest in a diversified portfolio of syariah-compliant equities and equity-related instruments, as well in Islamic money market instrument with emphasis on high growth potential and/or undervalued stocks relative to the assessed true value,” he said in the statement.
Wong Boon Choy showing a poster of the new fund.The fund is suitable for investors seeking to invest in a diversified portfolio of stocks listed in the Asia-Pacific region that conform with syariah principles, those seeking a medium- to long-term investment horizon between three and five years, and investors willing to accept a moderate to high level of risk.
The fund aims to provide long-term capital appreciation. Fund manager Meridian Asset Management Sdn Bhd will continuously adopt an active strategy in meeting the investment objectives.
The approved fund size is 600 million units, which will be priced at 25 sen each during the initial offer period from Jan 16 to Feb 5. The minimum initial investment is RM1,000, while the minimum additional investment is RM100.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: MAAKL Mutual Bhd has launched a regional fund called MAAKL Shariah Asia-Pacific Fund.
MAAKL said in a statement the new fund would focus on markets such as China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Taiwan, Thailand and Australia.
Chief executive officer and executive director Wong Boon Choy said the new fund was designed to invest up to a maximum of 98% of its net asset value in Asia-Pacific syariah-compliant equities and equity-related securities.
“Additionally, the fund will invest in a diversified portfolio of syariah-compliant equities and equity-related instruments, as well in Islamic money market instrument with emphasis on high growth potential and/or undervalued stocks relative to the assessed true value,” he said in the statement.
Wong Boon Choy showing a poster of the new fund.The fund is suitable for investors seeking to invest in a diversified portfolio of stocks listed in the Asia-Pacific region that conform with syariah principles, those seeking a medium- to long-term investment horizon between three and five years, and investors willing to accept a moderate to high level of risk.
The fund aims to provide long-term capital appreciation. Fund manager Meridian Asset Management Sdn Bhd will continuously adopt an active strategy in meeting the investment objectives.
The approved fund size is 600 million units, which will be priced at 25 sen each during the initial offer period from Jan 16 to Feb 5. The minimum initial investment is RM1,000, while the minimum additional investment is RM100.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, January 16, 2008
Bank Negara proposes Asian Sukuk Fund
BusinessTimes
BANK Negara Malaysia's governor yesterday suggested that Asia's central banks team up to set up a fund which will invest in Islamic bonds in the region.
The Asian Sukuk Fund would be an extension of the Asian Bond Fund (ABF), which was launched in 2003.The central banks launched their first ABF in 2003 by investing US$1 billion (RM3.25 billion) in dollar-denominated debt issued by Asian governments and official entities.
Tan Sri Dr Zeti Akhtar Aziz told an Islamic finance seminar in Hong Kong that there is immense potential to be tapped in Southeast Asia alone when it comes to Islamic finance.
Strategic alliances among Islamic finance players would also help develop the industry further, she said."Conventional financial institutions may also enter into alliances with Islamic financial institutions to be co-arrangers, to structure sukuk or other Islamic products based on syariah-compliant assets in this region."
Zeti said potential issuers may leverage on Malaysia's sukuk platform and its strength as the world's largest sukuk issuance centre with over US$56 billion (RM182 billion) or 62 per cent of the world's sukuk issues.
This was in addition to the ability to issue multi-currency sukuk and the flexibility to swap ringgit funding into other currencies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
BANK Negara Malaysia's governor yesterday suggested that Asia's central banks team up to set up a fund which will invest in Islamic bonds in the region.
The Asian Sukuk Fund would be an extension of the Asian Bond Fund (ABF), which was launched in 2003.The central banks launched their first ABF in 2003 by investing US$1 billion (RM3.25 billion) in dollar-denominated debt issued by Asian governments and official entities.
Tan Sri Dr Zeti Akhtar Aziz told an Islamic finance seminar in Hong Kong that there is immense potential to be tapped in Southeast Asia alone when it comes to Islamic finance.
Strategic alliances among Islamic finance players would also help develop the industry further, she said."Conventional financial institutions may also enter into alliances with Islamic financial institutions to be co-arrangers, to structure sukuk or other Islamic products based on syariah-compliant assets in this region."
Zeti said potential issuers may leverage on Malaysia's sukuk platform and its strength as the world's largest sukuk issuance centre with over US$56 billion (RM182 billion) or 62 per cent of the world's sukuk issues.
This was in addition to the ability to issue multi-currency sukuk and the flexibility to swap ringgit funding into other currencies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Malaysian trust funds gain 21% in 2007
TheEdge
KUALA LUMPUR: Trust fund net assets in Malaysia rose an average 1.42% in December 2007, raising the cumulative gains for the year to 21.33%, as soaring commodity prices bolstered the Kuala Lumpur Composite Index, according to the Lipper Malaysia Fund Market Insight Report.
“The past year was a good one for the Malaysian bourse, which hit historic highs. As a net exporter of petroleum and palm oil, Malaysia benefited from the current global commodity boom,” said Kenneth Koh, Lipper head of research for Asia (excluding Japan).
“The new year started on a rosy note for the Malaysia stock market, although the shorter-term picture has become increasingly volatile amid predictions of a major bubble in Chinese equities and a faltering US economy, while asset inflation is being felt in the country and the region,” he added.
In December, commodity funds led the group of eight asset classes tracked by Lipper, with a monthly 2.94% gain, followed by equity schemes, which added 2.12%. Mixed-asset funds came in third with a 1.78% advance.
Money market and bond funds rose 0.17% and 0.11% respectively, during the month.
The eight asset categories comprise 485 funds, of which 47% or 229 funds are equity-based.
Lipper does not track exchange-traded funds, and real estate investment trusts.
“The Malaysian currency rose nearly 6.7% against the US dollar for the year, amid strong buying of local shares and optimism about the Malaysian economy,” Koh said.
Over the 12-month period last year, equity schemes were the best performers, having chalked up 30.67% growth, followed by target maturity and mixed asset funds, which rose 27.66% and 22.53% respectively.
At the bottom of the list are bond and money-market funds, which posted advances of 3.2% and 2.82%, respectively.
In terms of sectors, in December 2007, general industry equity schemes took the lead, having grown an average 5.65%.
Information technology equity and small and middle-size equity funds grew 5.09% and 3.92% to clinch second and third spots.
Property funds, however, fared poorly during the month and the year, with schemes parking their money in global real estate, dipping the most at 6.47% and 14.91% respectively, due to the US subprime loan crisis.
For the full year, natural resource equity funds took the top spot, having gained an average 60.2%, trailed by the general and basic industry equity schemes, which rose 48.23% and 44.37% respectively.
Meanwhile, Islamic unit trusts rose 1.95% in December 2007 to end the year with a 22.84% gain, outperforming the broader market’s 1.42% and 21.33% advance respectively.
CMS Islamic Fund which invests in Malaysian equities was the best performer in 2007 with a 78.97% return, followed by OSK-UOB Emerging Opportunity Fund, a small and middle-sized capital equity scheme, with a 76.47% gain.
Trailing at the bottom of the list is the Malaysian equity-based Philip Master First Ethical Fund, which lost 18.5%
The KLCI, comprising 100 blue-chip stocks, gained 32% in 2007, making it the world’s third-best performer, after the Shanghai Composite Index and Bombay Stock Exchange Sensitive Index (Sensex), which rose 96.66% and 47.15% respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Trust fund net assets in Malaysia rose an average 1.42% in December 2007, raising the cumulative gains for the year to 21.33%, as soaring commodity prices bolstered the Kuala Lumpur Composite Index, according to the Lipper Malaysia Fund Market Insight Report.
“The past year was a good one for the Malaysian bourse, which hit historic highs. As a net exporter of petroleum and palm oil, Malaysia benefited from the current global commodity boom,” said Kenneth Koh, Lipper head of research for Asia (excluding Japan).
“The new year started on a rosy note for the Malaysia stock market, although the shorter-term picture has become increasingly volatile amid predictions of a major bubble in Chinese equities and a faltering US economy, while asset inflation is being felt in the country and the region,” he added.
In December, commodity funds led the group of eight asset classes tracked by Lipper, with a monthly 2.94% gain, followed by equity schemes, which added 2.12%. Mixed-asset funds came in third with a 1.78% advance.
Money market and bond funds rose 0.17% and 0.11% respectively, during the month.
The eight asset categories comprise 485 funds, of which 47% or 229 funds are equity-based.
Lipper does not track exchange-traded funds, and real estate investment trusts.
“The Malaysian currency rose nearly 6.7% against the US dollar for the year, amid strong buying of local shares and optimism about the Malaysian economy,” Koh said.
Over the 12-month period last year, equity schemes were the best performers, having chalked up 30.67% growth, followed by target maturity and mixed asset funds, which rose 27.66% and 22.53% respectively.
At the bottom of the list are bond and money-market funds, which posted advances of 3.2% and 2.82%, respectively.
In terms of sectors, in December 2007, general industry equity schemes took the lead, having grown an average 5.65%.
Information technology equity and small and middle-size equity funds grew 5.09% and 3.92% to clinch second and third spots.
Property funds, however, fared poorly during the month and the year, with schemes parking their money in global real estate, dipping the most at 6.47% and 14.91% respectively, due to the US subprime loan crisis.
For the full year, natural resource equity funds took the top spot, having gained an average 60.2%, trailed by the general and basic industry equity schemes, which rose 48.23% and 44.37% respectively.
Meanwhile, Islamic unit trusts rose 1.95% in December 2007 to end the year with a 22.84% gain, outperforming the broader market’s 1.42% and 21.33% advance respectively.
CMS Islamic Fund which invests in Malaysian equities was the best performer in 2007 with a 78.97% return, followed by OSK-UOB Emerging Opportunity Fund, a small and middle-sized capital equity scheme, with a 76.47% gain.
Trailing at the bottom of the list is the Malaysian equity-based Philip Master First Ethical Fund, which lost 18.5%
The KLCI, comprising 100 blue-chip stocks, gained 32% in 2007, making it the world’s third-best performer, after the Shanghai Composite Index and Bombay Stock Exchange Sensitive Index (Sensex), which rose 96.66% and 47.15% respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
ING China Fund to generate 26% annual earnings growth
TheEdge
KUALA LUMPUR: ING Investment Management Asia Pacific (Hong Kong) Ltd expects its ING China Access Fund to generate 26% in annual earnings growth over the next three years.
Its senior investment manager Michael Chiu said the 26% growth was sustainable going forward due to China’s real and nominal gross domestic product (GDP) growth of 9% and 14% respectively.
“Earnings growth is a key driver for the rise in share price in the long term and we expect double-digit growth in the share price,” he said after the launch of the new fund.
The new fund has an approved fund size of 600 million units and was offered for sale until Jan 31, with a 50 sen per unit entry price and a minimum initial investment of RM5,000.
ING China Access would invest a minimum of 95% in the fund which offers investors access to premier Chinese companies not listed on China’s A-share market, as well as good quality China initial public offerings (IPOs) listed on international markets.
ING Investment Management Asia Pacific (Hong Kong) is the investment manager for the ING China Access Fund.
Chiu said strong earnings and economic growth as well as the listing of more world-class Chinese companies on Shanghai’s A-share market helped lower the overall valuation, although the market’s 2008 price earnings (PE) ratio of 31.2 times might be excessive.
He said the current high valuation for China’s A-share market was due to demand and supply factors, high savings rate and the lack of alternative investment vehicles.
Chiu said domestic sectors like consumption, real estate and infrastructure would benefit from the appreciation in the renminbi, which ING believed would continue over the next five to 10 years.
“We believe these (sectors) will be the major investment theme in 2008, and the property and infrastructure sectors are going to prosper as well,” he said.
ING Funds Bhd chief executive officer Steve Ong said the fund offered reasonably safe access to the Chinese market because ING Hong Kong would pick companies trading at a discount or with reasonable price valuations.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: ING Investment Management Asia Pacific (Hong Kong) Ltd expects its ING China Access Fund to generate 26% in annual earnings growth over the next three years.
Its senior investment manager Michael Chiu said the 26% growth was sustainable going forward due to China’s real and nominal gross domestic product (GDP) growth of 9% and 14% respectively.
“Earnings growth is a key driver for the rise in share price in the long term and we expect double-digit growth in the share price,” he said after the launch of the new fund.
The new fund has an approved fund size of 600 million units and was offered for sale until Jan 31, with a 50 sen per unit entry price and a minimum initial investment of RM5,000.
ING China Access would invest a minimum of 95% in the fund which offers investors access to premier Chinese companies not listed on China’s A-share market, as well as good quality China initial public offerings (IPOs) listed on international markets.
ING Investment Management Asia Pacific (Hong Kong) is the investment manager for the ING China Access Fund.
Chiu said strong earnings and economic growth as well as the listing of more world-class Chinese companies on Shanghai’s A-share market helped lower the overall valuation, although the market’s 2008 price earnings (PE) ratio of 31.2 times might be excessive.
He said the current high valuation for China’s A-share market was due to demand and supply factors, high savings rate and the lack of alternative investment vehicles.
Chiu said domestic sectors like consumption, real estate and infrastructure would benefit from the appreciation in the renminbi, which ING believed would continue over the next five to 10 years.
“We believe these (sectors) will be the major investment theme in 2008, and the property and infrastructure sectors are going to prosper as well,” he said.
ING Funds Bhd chief executive officer Steve Ong said the fund offered reasonably safe access to the Chinese market because ING Hong Kong would pick companies trading at a discount or with reasonable price valuations.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Prudential Launches New Fund
TheStar
KUALA LUMPUR: Prudential Fund Management Bhd yesterday launched Prudential Global Emerging Market Fund (PRUgem), which has an approved fund size of 1.2 billion units.
The fund will primarily invest in equity securities of companies in emerging Asian markets as well as other emerging markets in Latin America, the Middle East and Africa.
Chief executive officer Mark Toh said investing in the other emerging markets outside Asia allowed investors to capitalise on the potential of these markets.
“We choose to launch an emerging market fund because emerging markets have been growing at 3% per annum, faster than developed markets since 1999 and representing greater world gross domestic product growth contribution,” he added after the launch of PRUgem.
At least 95% of the fund's net asset value will be invested through a collective investment scheme – the Schroder International Selection Fund Emerging Markets in euro denomination. The scheme is managed by Schroders Investment Management (S) Ltd.
With an approved fund size of 1.2 billion, PRUgem is being offered at 25 sen per unit until Jan 31.
The minimum investment is RM1,000 with subsequent minimal investment of RM100.
It is targeted at retail investors with high-risk tolerance and seeking long-term capital growth.
Toh said there had been massive improvement in the economic fundamentals of emerging markets with debt burden falling, foreign reserves improving, trade balance stronger, inflation well controlled and currencies undervalued and a healthy current account surplus.
“Emerging markets have outperformed global equities for the past six years mainly due to strong earnings growth. We see local investors taking the opportunity to invest offshore to diversify their portfolio.
“Obviously there is demand for them (such funds) as fund houses have been launching offshore programmes in the last three to four months,” he added.
Prudential Fund Management has since Jan 1 taken over management of Prudential Assurance Malaysia Bhd and Prudential BSN Takaful funds, bringing the total funds under management to 33.
With this, its total net assets have grown to over RM12bil consisting of RM3.7bil from the retail unit trust business and about RM8bil from private mandate.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Prudential Fund Management Bhd yesterday launched Prudential Global Emerging Market Fund (PRUgem), which has an approved fund size of 1.2 billion units.
The fund will primarily invest in equity securities of companies in emerging Asian markets as well as other emerging markets in Latin America, the Middle East and Africa.
Chief executive officer Mark Toh said investing in the other emerging markets outside Asia allowed investors to capitalise on the potential of these markets.
“We choose to launch an emerging market fund because emerging markets have been growing at 3% per annum, faster than developed markets since 1999 and representing greater world gross domestic product growth contribution,” he added after the launch of PRUgem.
At least 95% of the fund's net asset value will be invested through a collective investment scheme – the Schroder International Selection Fund Emerging Markets in euro denomination. The scheme is managed by Schroders Investment Management (S) Ltd.
With an approved fund size of 1.2 billion, PRUgem is being offered at 25 sen per unit until Jan 31.
The minimum investment is RM1,000 with subsequent minimal investment of RM100.
It is targeted at retail investors with high-risk tolerance and seeking long-term capital growth.
Toh said there had been massive improvement in the economic fundamentals of emerging markets with debt burden falling, foreign reserves improving, trade balance stronger, inflation well controlled and currencies undervalued and a healthy current account surplus.
“Emerging markets have outperformed global equities for the past six years mainly due to strong earnings growth. We see local investors taking the opportunity to invest offshore to diversify their portfolio.
“Obviously there is demand for them (such funds) as fund houses have been launching offshore programmes in the last three to four months,” he added.
Prudential Fund Management has since Jan 1 taken over management of Prudential Assurance Malaysia Bhd and Prudential BSN Takaful funds, bringing the total funds under management to 33.
With this, its total net assets have grown to over RM12bil consisting of RM3.7bil from the retail unit trust business and about RM8bil from private mandate.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, January 9, 2008
CIMB-Principal eyes RM26b funds
BusinessTimes
CIMB-Principal Asset Management Bhd hopes to increase funds under its management by 36.8 per cent to RM26 billion by the end of 2008.Its chief executive officer Datuk Noripah Kamso said the firm is optimistic of growing the funds under its stewardship as it rolls out more products this year.
"As of December 31 2007, funds under our management stood at RM19 billion but are expected to increase as we plan to introduce at least 20 new funds in 2008," she said.
CIMB-Principal, which manages over 60 unit trust funds, is a joint venture between Malaysian financial service entity CIMB Group and US-based Principal Financial Group.
The firm also has operations in Indonesia and Singapore. It has an agency force of some 5,300 people."Institutional buyers are expected to make up 60 per cent of the total funds under management this year, while the rest being held by retail buyers," she said.Noripah told this to reporters after the launch of CIMB Islamic Global Equity Fund, the first global equity fund which complies with Syariah principles in Kuala Lumpur yesterday.
She said the new fund, with a size of 300 million units worth an initial 50 sen apiece, will be managed by CIMB-Principal's partner, Principal Global Investors, a diversified asset management organisation and a member of Principal Financial, and distributed by CIMB Wealth Advisors."CIMB Islamic Global Equity Fund offers a balanced solution that gives investors access to equities in numerous emerging and developed markets," Noripah said.
She said the fund will focus on Islamic securities that are undervalued by the market and have potential growth.
"We expect to start seeing some return for the fund after 24 months with a value of 15 per cent per annum," Noripah said, adding that the firm is also targeting investors from the Middle East for the fund.
She said with the new fund, investors can now benefit from a globally diversified portfolio comprising long-term core investment with exposure to emerging markets such as Brazil, Chile, Hungary, Indonesia, Mexico, Philippines, Poland, South Africa and Thailand.
She said CIMB Islamic Global Equity Fund's broad diversification across Asia Pacific, Europe, North and Latin America is expected to significantly reduce the overall volatility of the portfolio.
The fund's initial offer period ends on January 28.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Asian equity markets expected to rise this year
TheStar
KUALA LUMPUR: The outlook for the Asian equity markets remains attractive and these markets are expected to rise further this year despite the sub-prime mortgage issue in the United States.
UOB Asset Management Ltd (UOBAM) senior director Colin Ng said Asia would continue to be the fastest growing region in the world as its emerging markets liberalised and new companies emerged.
“(Asia's) low cost structure will play an important role in the global outsourcing trend among multinational companies,” the Singapore-based Ng said in his presentation on Asia Growth Opportunities at the launch of OSK-UOB Asian Growth Opportunities Fund by OSK-UOB Unit Trust Management Bhd - a unit of OSK Investment Bank Bhd - yesterday.
Ng said infrastructure spending in developing markets was expected to reach US$3 trillion in the next 10 years with China, India and Indonesia projected to spend about US$654bil over the next five years.
The World Bank estimates that a 1% increase in infrastructure investment would translate into a 1% increase in gross domestic product.
On the decoupling of Asian markets from the US market since last year, Ng said various Asian economies continued to register strong domestic demand while companies were reporting good corporate earnings.
Asian markets, he said were also trading at reasonable valuations.
On the newly launched fund, OSK-UOB Unit Trust Management chief executive officer Ho Seng Yee said the fund aimed to achieve long-term capital growth by investing in mid- to small-cap stocks and stocks-related securities in the Asia Pacific region excluding Japan.
It is being offered at a unit price of 50 sen with an initial minimum investment of RM1,000. The offer period ends on Jan 28.
It is a feeder fund that invests up to 98% of its net asset value in United Asian Growth Opportunities Fund (UAGOF) managed by UOBAM.
“UAGOF has superior track record since its inception three years ago with winners (stocks) in its portfolio, including KNM Group Bhd, Singapore-based Epure International Ltd and Hong Kong-based Shangdong Weigao Group Medical Polymer Ltd,” he said
Earlier, Ng said under researched companies that were “small in size but big on potential” could grow much faster than large cap companies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The outlook for the Asian equity markets remains attractive and these markets are expected to rise further this year despite the sub-prime mortgage issue in the United States.
UOB Asset Management Ltd (UOBAM) senior director Colin Ng said Asia would continue to be the fastest growing region in the world as its emerging markets liberalised and new companies emerged.
“(Asia's) low cost structure will play an important role in the global outsourcing trend among multinational companies,” the Singapore-based Ng said in his presentation on Asia Growth Opportunities at the launch of OSK-UOB Asian Growth Opportunities Fund by OSK-UOB Unit Trust Management Bhd - a unit of OSK Investment Bank Bhd - yesterday.
Ng said infrastructure spending in developing markets was expected to reach US$3 trillion in the next 10 years with China, India and Indonesia projected to spend about US$654bil over the next five years.
The World Bank estimates that a 1% increase in infrastructure investment would translate into a 1% increase in gross domestic product.
On the decoupling of Asian markets from the US market since last year, Ng said various Asian economies continued to register strong domestic demand while companies were reporting good corporate earnings.
Asian markets, he said were also trading at reasonable valuations.
On the newly launched fund, OSK-UOB Unit Trust Management chief executive officer Ho Seng Yee said the fund aimed to achieve long-term capital growth by investing in mid- to small-cap stocks and stocks-related securities in the Asia Pacific region excluding Japan.
It is being offered at a unit price of 50 sen with an initial minimum investment of RM1,000. The offer period ends on Jan 28.
It is a feeder fund that invests up to 98% of its net asset value in United Asian Growth Opportunities Fund (UAGOF) managed by UOBAM.
“UAGOF has superior track record since its inception three years ago with winners (stocks) in its portfolio, including KNM Group Bhd, Singapore-based Epure International Ltd and Hong Kong-based Shangdong Weigao Group Medical Polymer Ltd,” he said
Earlier, Ng said under researched companies that were “small in size but big on potential” could grow much faster than large cap companies.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Tuesday, January 8, 2008
Pacific Mutual’s income distribution
TheStar
KUALA LUMPUR: Pacific Mutual Fund Bhd has announced income distribution for three of its funds for the financial year/interim period ended Dec 31.
The income distribution comprised seven sen per unit for the Pacific Dividend Fund, 2.5 sen per unit for the Pacific AsiaPac Income Fund and 0.4 sen per unit for the Pacific Cash Fund. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Pacific Mutual Fund Bhd has announced income distribution for three of its funds for the financial year/interim period ended Dec 31.
The income distribution comprised seven sen per unit for the Pacific Dividend Fund, 2.5 sen per unit for the Pacific AsiaPac Income Fund and 0.4 sen per unit for the Pacific Cash Fund. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
HLG Asset to double asset size to RM4.2bil
TheStar
KUALA LUMPUR: HLG Asset Management Sdn Bhd aims to increase its asset size to RM4.2bil by the middle of the year, almost doubling its size of RM2.23bil at end-2007.
Chief executive officer Richard Lin said HLG would kick-start the effort to increase its asset size with the launch of the RM300mil HLG Global Value Fund, comprising 600 million units priced at 50 sen each.
“We will have a few more funds in the first half of the year,” he said after the launch of the fund last Thursday.
He said the fund, which would be managed by Delaware Capital Management, was expected to give investors double-digit returns.
“The fund will also provide investors with a diversified portfolio of equity securities of companies from a wide range of industries with original listings in both developed and emerging markets worldwide,” he said.
The offer period ends Jan 23. The minimum initial investment is RM1,000 and the minimum additional investment is RM100.
Lin said the asset allocation for the fund would be a minimum 70% in global equity and a maximum 30% in fixed income investments.
On the outlook for Malaysian equities market, Lin said sentiments remained positive but investors needed to diversify their asset allocations in 2008 as there was still volatility in both the global and local equities markets.
He said the impending general election and growth of domestic consumption would be key factors for the local equities market.
“As of now, domestic consumption outlook remains positive. So, even if exports remain sluggish.
Malaysia can still record a gross domestic growth of 5%-6% boosted by domestic consumption,” he said.
Meanwhile, institutional consulting director, Citi Institutional Consulting institutional consulting director Christopher Soon said the fund would invest in a portfolio of heavyweight companies in Asia-Pacific and Europe that were considered undervalued.
”At this juncture, the fund will not be invested in the US market due to the challenges in the economy.
“Once the subprime issue settles down we will be more than happy to go into US market,” he said. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: HLG Asset Management Sdn Bhd aims to increase its asset size to RM4.2bil by the middle of the year, almost doubling its size of RM2.23bil at end-2007.
Chief executive officer Richard Lin said HLG would kick-start the effort to increase its asset size with the launch of the RM300mil HLG Global Value Fund, comprising 600 million units priced at 50 sen each.
“We will have a few more funds in the first half of the year,” he said after the launch of the fund last Thursday.
He said the fund, which would be managed by Delaware Capital Management, was expected to give investors double-digit returns.
“The fund will also provide investors with a diversified portfolio of equity securities of companies from a wide range of industries with original listings in both developed and emerging markets worldwide,” he said.
The offer period ends Jan 23. The minimum initial investment is RM1,000 and the minimum additional investment is RM100.
Lin said the asset allocation for the fund would be a minimum 70% in global equity and a maximum 30% in fixed income investments.
On the outlook for Malaysian equities market, Lin said sentiments remained positive but investors needed to diversify their asset allocations in 2008 as there was still volatility in both the global and local equities markets.
He said the impending general election and growth of domestic consumption would be key factors for the local equities market.
“As of now, domestic consumption outlook remains positive. So, even if exports remain sluggish.
Malaysia can still record a gross domestic growth of 5%-6% boosted by domestic consumption,” he said.
Meanwhile, institutional consulting director, Citi Institutional Consulting institutional consulting director Christopher Soon said the fund would invest in a portfolio of heavyweight companies in Asia-Pacific and Europe that were considered undervalued.
”At this juncture, the fund will not be invested in the US market due to the challenges in the economy.
“Once the subprime issue settles down we will be more than happy to go into US market,” he said. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
AmInvestment Bank wins best REIT award
TheStar
KUALA LUMPUR: AmInvestment Bank Bhd has won the “Best Islamic REIT Deal in South-East Asia” award in the inaugural South-East Asia Deal Awards organised by Alpha Southeast Asia magazine.
The award highlighted the RM300mil sukuk Ijarah programme by Al'Aqar Capital Sdn Bhd for which AmInvesment was lead arranger and principal adviser.
The deal was not only the first sukuk in the world issued by an Islamic REIT (real estate investment trust), but also the first Islamic structure based on Ijarah, where the Ijarah assets are leased under the master lease and followed by existing commercial leases forming the subleases, a statement from AmInvestment said yesterday. The South-East Asia Deal Awards were given in recognition of the best and most innovative corporate-centric investment and commercial banking solutions in the region.
Only transactions lead managed by local banks in Indonesia, Malaysia, Philippines, Singapore and Thailand were considered for the awards. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: AmInvestment Bank Bhd has won the “Best Islamic REIT Deal in South-East Asia” award in the inaugural South-East Asia Deal Awards organised by Alpha Southeast Asia magazine.
The award highlighted the RM300mil sukuk Ijarah programme by Al'Aqar Capital Sdn Bhd for which AmInvesment was lead arranger and principal adviser.
The deal was not only the first sukuk in the world issued by an Islamic REIT (real estate investment trust), but also the first Islamic structure based on Ijarah, where the Ijarah assets are leased under the master lease and followed by existing commercial leases forming the subleases, a statement from AmInvestment said yesterday. The South-East Asia Deal Awards were given in recognition of the best and most innovative corporate-centric investment and commercial banking solutions in the region.
Only transactions lead managed by local banks in Indonesia, Malaysia, Philippines, Singapore and Thailand were considered for the awards. – Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, January 4, 2008
Public Mutual declares distributions for 5 funds
TheEdge
KUALA LUMPUR: Public Bank Bhd’s unit Public Mutual has declared gross distributions of 10 sen per unit for the Public Savings Fund and PB Balanced Fund for the financial year period ended Dec 31, 2007.
It also declared gross distributions of 7.5 sen per unit for the Public Focus Select Fund and nine sen per unit for the PB Growth Fund. As for the Public Islamic Enhanced Bond Fund, it declared gross distribution of 3.5 sen per unit.
Public Mutual chairman Tan Sri Dr Teh Hong Piow said yesterday that the Public Savings Fund, Public Focus Select Fund and PB Growth Fund generated a one-year return of 35.24%, 32.87% and 56.10% respectively for the period ended Dec 7, 2007, based on The Edge-Lipper Fund Table dated Dec 17.
“These funds have generally outperformed the benchmark Kuala Lumpur Composite Index (KLCI), which registered a gain of 30.57 for the same period,” he said.
The PB Balanced Fund generated a one-year return of 33.70% for the period ended Dec 7, 2007, and it also outperformed its benchmark of 19.44% for the same period.
The Public Islamic Enhanced Bond Fund outperformed its benchmark 12-month General Investment Account-rates of 3.70%, with a one-year return of 5.02% for the same period.
Public Mutual manages 55 funds and the total net asset value of the funds managed by the company is RM27.4 billion.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Public Bank Bhd’s unit Public Mutual has declared gross distributions of 10 sen per unit for the Public Savings Fund and PB Balanced Fund for the financial year period ended Dec 31, 2007.
It also declared gross distributions of 7.5 sen per unit for the Public Focus Select Fund and nine sen per unit for the PB Growth Fund. As for the Public Islamic Enhanced Bond Fund, it declared gross distribution of 3.5 sen per unit.
Public Mutual chairman Tan Sri Dr Teh Hong Piow said yesterday that the Public Savings Fund, Public Focus Select Fund and PB Growth Fund generated a one-year return of 35.24%, 32.87% and 56.10% respectively for the period ended Dec 7, 2007, based on The Edge-Lipper Fund Table dated Dec 17.
“These funds have generally outperformed the benchmark Kuala Lumpur Composite Index (KLCI), which registered a gain of 30.57 for the same period,” he said.
The PB Balanced Fund generated a one-year return of 33.70% for the period ended Dec 7, 2007, and it also outperformed its benchmark of 19.44% for the same period.
The Public Islamic Enhanced Bond Fund outperformed its benchmark 12-month General Investment Account-rates of 3.70%, with a one-year return of 5.02% for the same period.
Public Mutual manages 55 funds and the total net asset value of the funds managed by the company is RM27.4 billion.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
RHB Group merges asset management and unit trust businesses
TheEdge
KUALA LUMPUR: RHB Banking Group merged its asset management and unit trust businesses to offer a more integrated investment approach, through one of its subsidiaries, RHB Investment Management Sdn Bhd (RHBIM).
RHBIM, a wholly owned subsidiary of RHB Investment Bank, commenced operations on Jan 1 and will be managing funds in excess of RM4 billion and 23 unit trust funds.
“With the completion of our initiative to combine both asset management and unit trust businesses, we will now be able to offer our customers an even more integrated investment approach,” RHB Investment Bank Bhd’s managing director Chay Wai Leong said in a statement.
“It is our vision and aspiration to be our customer’s choice partner for growth while attaining a leading market position through the expansion of our range of products and services,” Chay said.
Prior to the integration, RHB Banking Group offered its asset management and unit trust products and services through RHB Asset Management Sdn Bhd and RHB Unit Trust Management Bhd respectively.
RHBIM will be helmed by Sharifatul Hanizah Said Ali as chief executive officer. She joined RHB Banking Group on Dec 1, 2006 as RHB Asset Management’s chief executive officer.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: RHB Banking Group merged its asset management and unit trust businesses to offer a more integrated investment approach, through one of its subsidiaries, RHB Investment Management Sdn Bhd (RHBIM).
RHBIM, a wholly owned subsidiary of RHB Investment Bank, commenced operations on Jan 1 and will be managing funds in excess of RM4 billion and 23 unit trust funds.
“With the completion of our initiative to combine both asset management and unit trust businesses, we will now be able to offer our customers an even more integrated investment approach,” RHB Investment Bank Bhd’s managing director Chay Wai Leong said in a statement.
“It is our vision and aspiration to be our customer’s choice partner for growth while attaining a leading market position through the expansion of our range of products and services,” Chay said.
Prior to the integration, RHB Banking Group offered its asset management and unit trust products and services through RHB Asset Management Sdn Bhd and RHB Unit Trust Management Bhd respectively.
RHBIM will be helmed by Sharifatul Hanizah Said Ali as chief executive officer. She joined RHB Banking Group on Dec 1, 2006 as RHB Asset Management’s chief executive officer.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
OSK-UOB Golden Dragon fund ups size to 2b units
TheEdge
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd has increased the size of its fund, OSK-UOB Golden Dragon Fund to two billion units following strong and consistent demand for its units since its launch in May last year.
The initial units then offered for subscription was 400 million units. This recent increase in its fund size is the Fund’s fifth such exercise, it said yesterday.
“To-date, we have sold 1.4 billion units. This increase is again required to meet the steady and constant applications for its units,” said the fund’s chief executive officer Ho Seng Yee.
Ho said in the past month, the fund manager distributed a gross distribution of 6.5 sen per unit, or a dividend yield of 12.20% for an investment period of about six months.
The Golden Dragon Fund capitalises on the tremendous growth opportunities of the equity markets of China, Hong Kong and Taiwan.
The fund manager said the fund’s investment strategy allowed asset allocations in equities and fixed income securities on a 70/30 ratio which could be reversed based on prevailing investment conditions.
OSK-UOB Unit Trust Management also declared distributions for five of its funds for the financial year/period ended Dec 31, 2007.
It declared a gross distribution of 14.7595 sen per unit for OSK-UOB Equity Trust, 16.3722 sen per unit for OSK-UOB Growth and Income Focus Fund (GIFT); 6.7131 sen per unit for OSK-UOB Asia Pacific Fund; 6.4688 sen per unit for OSK-UOB Money Market Fund, and 2.4980 sen per unit (interim distribution) for OSK-UOB Global Equity Yield Fund.
Ho said the Equity Trust, GIFT Fund, Asia Pacific Fund and the Money Market Fund generated yields of 17.35%, 21.24%, 12.93% and 6.21% respectively for the financial year ended Dec 31, 2007.
The Global Equity Yield Fund for the six-month period ended Dec 31, 2007, registered a yield of 4.78%.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd has increased the size of its fund, OSK-UOB Golden Dragon Fund to two billion units following strong and consistent demand for its units since its launch in May last year.
The initial units then offered for subscription was 400 million units. This recent increase in its fund size is the Fund’s fifth such exercise, it said yesterday.
“To-date, we have sold 1.4 billion units. This increase is again required to meet the steady and constant applications for its units,” said the fund’s chief executive officer Ho Seng Yee.
Ho said in the past month, the fund manager distributed a gross distribution of 6.5 sen per unit, or a dividend yield of 12.20% for an investment period of about six months.
The Golden Dragon Fund capitalises on the tremendous growth opportunities of the equity markets of China, Hong Kong and Taiwan.
The fund manager said the fund’s investment strategy allowed asset allocations in equities and fixed income securities on a 70/30 ratio which could be reversed based on prevailing investment conditions.
OSK-UOB Unit Trust Management also declared distributions for five of its funds for the financial year/period ended Dec 31, 2007.
It declared a gross distribution of 14.7595 sen per unit for OSK-UOB Equity Trust, 16.3722 sen per unit for OSK-UOB Growth and Income Focus Fund (GIFT); 6.7131 sen per unit for OSK-UOB Asia Pacific Fund; 6.4688 sen per unit for OSK-UOB Money Market Fund, and 2.4980 sen per unit (interim distribution) for OSK-UOB Global Equity Yield Fund.
Ho said the Equity Trust, GIFT Fund, Asia Pacific Fund and the Money Market Fund generated yields of 17.35%, 21.24%, 12.93% and 6.21% respectively for the financial year ended Dec 31, 2007.
The Global Equity Yield Fund for the six-month period ended Dec 31, 2007, registered a yield of 4.78%.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
AmInvestment Bank declares income distribution for 3 funds
TheEdge
KUALA LUMPUR: AmInvestment Bank group has declared income distributions totalling RM9.26 million for its AmAsia-Pacific Property Equities and AmConstant 12/07 funds, and RM7.5 million for its ABF Malaysia Bond Index Fund.
For AmAsia-Pacific Property Equities, the final income distribution of four sen per unit for the financial year ended Nov 30, 2007 represented a yield of 3.8%, the bank said.
It said the fund delivered a return of 20.7% since its launch in June 2006, outperforming its benchmark by 3% as at November 2007.
AmAsia-Pacific Property Equities is a capital growth and income fund which seeks to obtain long-term capital appreciation by investing its assets in the quoted equities of companies or real estate investment trusts (REITs) in the Asia-Pacific region.
AmConstant 12/07 unit holders will receive a total distribution of 4.2 sen per unit for the year ended Dec 31, 2007, following the latest distribution of 2.1 sen per unit.
The total distribution for the closed-ended fixed income fund represented a yield of 4.1% investment return. AmInvestment Bank said the fund matured on Dec 24, 2007 and had given a total distribution of 12.6 sen, which represented 12.6% investment return based on the NAV per unit of RM1 as at its launch.
It said the fund had delivered a three-year return of 12.3%, outperforming its benchmark by 1.56% as at November 2007.
For the ABF Malaysia Bond Index Fund, income distribution for the year ended Dec 31, 2007 increased to 3.1 sen after the final distribution of 1.55 sen per unit. The total distribution represented a yield of 2.9% investment return, it said.
ABF Malaysia Bond Index Fund is a fixed-income exchange traded fund listed on Bursa Malaysia and is passively managed against the given benchmark.
AmMutual manages 37 unit trust funds. These funds, together with discretionary mandates, totalled RM19.1 billion as at Nov 30, 2007.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: AmInvestment Bank group has declared income distributions totalling RM9.26 million for its AmAsia-Pacific Property Equities and AmConstant 12/07 funds, and RM7.5 million for its ABF Malaysia Bond Index Fund.
For AmAsia-Pacific Property Equities, the final income distribution of four sen per unit for the financial year ended Nov 30, 2007 represented a yield of 3.8%, the bank said.
It said the fund delivered a return of 20.7% since its launch in June 2006, outperforming its benchmark by 3% as at November 2007.
AmAsia-Pacific Property Equities is a capital growth and income fund which seeks to obtain long-term capital appreciation by investing its assets in the quoted equities of companies or real estate investment trusts (REITs) in the Asia-Pacific region.
AmConstant 12/07 unit holders will receive a total distribution of 4.2 sen per unit for the year ended Dec 31, 2007, following the latest distribution of 2.1 sen per unit.
The total distribution for the closed-ended fixed income fund represented a yield of 4.1% investment return. AmInvestment Bank said the fund matured on Dec 24, 2007 and had given a total distribution of 12.6 sen, which represented 12.6% investment return based on the NAV per unit of RM1 as at its launch.
It said the fund had delivered a three-year return of 12.3%, outperforming its benchmark by 1.56% as at November 2007.
For the ABF Malaysia Bond Index Fund, income distribution for the year ended Dec 31, 2007 increased to 3.1 sen after the final distribution of 1.55 sen per unit. The total distribution represented a yield of 2.9% investment return, it said.
ABF Malaysia Bond Index Fund is a fixed-income exchange traded fund listed on Bursa Malaysia and is passively managed against the given benchmark.
AmMutual manages 37 unit trust funds. These funds, together with discretionary mandates, totalled RM19.1 billion as at Nov 30, 2007.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
HLG Global Value Fund targets 12%-15% returns
TheEdge
KUALA LUMPUR: HLG Unit Trust Bhd is targeting 12% to 15% market returns from its newly launched HLG Global Value Fund.
The fund would invest in a diversified portfolio of undervalued equity securities in markets worldwide, thus extending investors’ opportunities for global exposure, HLG Asset Management Sdn Bhd executive director and chief executive officer Richard Lin said at the launch yesterday. The asset allocation of the fund would be a minimum 70% in global equity securities and a maximum 30% in fixed income investments.
The fund’s portfolio comprises securities of mid- to big-cap companies with at least US$500 million (RM1.68 billion) market capitalisation that were undervalued by about 20% based on fundamental research, and whose long-term earnings power were not reflected in the current market price of their securities, said Lin.
The fund has a total approved fund size of 600 million units priced at 50 sen per unit during the initial offer period from Jan 3 to Jan 23. The minimum initial investment is RM1,000.
Lin said the companies would be evaluated based on their potential corporate earnings and dividend paying capability as the fund aims to provide investors with consistent and long-term capital growth.
American-based Delaware Capital Management has been appointed the external foreign investment manager of the fund. “We will look into upsizing it to the maximum if demand is overwhelming. After the initial offer period, Delaware would like to close and we would have to reassess the fund again,” he said.
The HLG Global Value Fund brings HLG Unit Trust’s portfolio of managed funds to 26, and is part of the company’s strategy in asset under management growth.
HLG Unit Trust Bhd recorded a combined total fund size of RM2.23 billion as at Dec 27 last year and is targeting to grow it to RM4.2 billion by mid-2008, said Lin.
He added that there were several more funds in the pipeline for launch by mid-2008.
HLG Unit Trust Bhd is a wholly owned subsidiary of HLG Capital Bhd Malaysia, which is 75% owned by Hong Leong Financial Group Bhd.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Riding on Asia's Robust Domestic Demand
PublicMutual
Asian consumers have benefited from their countries' robust economic growth as rising incomes have allowed them to attain higher standards of living and an improved lifestyle. As Asian economies are projected to continue experiencing robust growth, consumer spending is envisaged to remain strong in the years ahead.
Consumer spending generally accounts for a significant share of gross domestic product (GDP) in most economies. This is no different in Asia where consumer spending accounts for about half of GDP. In the 2001-2006 period, consumer spending in Indonesia and China grew at healthy annual rates of 13.6 percent and 10.4 percent respectively on the back of rising income and urbanisation.
Meanwhile, South Korea, Malaysia and ThailandÕs consumer spending growth were also impressive at around 9.0 percent - 9.5 percent per annum, backed by strong consumer confidence amidst generally buoyant economic activities. However, the growth of consumer spending in other regional economies such as Singapore, Hong Kong and Taiwan were more moderate.
Factors Propelling Growth in Consumer Spending
In the Far-East region, consumer spending has been fuelled by robust growth in disposable incomes, the wealth effect from rising equity and property markets, increased urbanisation, healthy tourism activities and attractive lending rates.
Higher Disposable Income
Consumer spending in Asia has grown in tandem with rising GDP per capita in recent years. China's GDP per capita grew at 13.4 percent p.a. over the 2001 - 2006 period on the back of surging economic growth while Indonesia registered impressive GDP per capita growth of 12.6 percent p.a. over the same period, supported by easier monetary conditions and rising urbanisation. South Korea, Malaysia and Thailand also recorded solid GDP per capita growth of between 6.6 percent and 9.1 percent backed by strong export earnings and healthy business environment. In comparison, the increase in GDP per capita in Singapore and Hong Kong was more moderate given their high base. With increasing prosperity, GDP per capita is expected to continue growing at a healthy pace in the years ahead.
Wealth Effect From Rising Equity and Property Markets
Rising equity and property prices were also major drivers of Asia's consumer spending. The uptrend in stock markets coupled with rising property prices in the last few years have generated positive wealth effects and spurred spending on consumer products and services.
Increased Urbanisation
With workers migrating to the cities in search of better job prospects, selected countries in Asia have also experienced a rising trend in urbanisation. As a result, consumer spending has increased as people obtain higher paying jobs in the cities. For instance, the urban population ratio in China increased from 27.4 percent in 1990 to 40.5 percent in 2005. This resulted in a surge in consumer spending as income levels of city workers in China are three times higher compared to rural workers. In Indonesia, the urbanisation ratio increased from 30.6 percent to 47.9 percent over the same period. The rising urbanisation trend in these two countries with a total population of around 1.5 billion is expected to be sustained as their urbanisation ratios are still relatively low compared to the more developed countries in the region.Healthy Tourism Activities
Rising affluence in the Far-East region has spurred travel activities which also contributed towards the growth in consumer spending. Singapore and Thailand are major beneficiaries of a thriving tourism sector while more recently, Hong Kong and Macau have benefited from China's rising affluence with mainland tourists accounting for more than half of tourist arrivals in these cities. Following the liberalisation of gaming laws and an influx of new luxury hotels, gaming revenue in Macau reached US$7.2 billion1 in 2006, which exceeded Las Vegas' gaming revenue.
Furthermore, a steady inflow of expatriates and skilled migrants attracted by the open employment policies of Singapore and Hong Kong have also contributed to robust consumer spending in these countries. Young Population and Workforce Consumer spending in countries such as Malaysia, Indonesia and the Philippines will also experience strong growth in the years ahead as about half of the population in these countries is below 25 years of age compared to one-third in the U.S. and Europe. As more young people join the workforce in these countries, they will contribute to consumer spending in the coming years. In addition, the growing participation of Asian women in the workforce has enhanced household incomes and further propelled consumer spending.
In tandem with rising affluence and a young population, Asian consumers have increasingly adopted a broad range of Western lifestyles such as fast food consumption, haute cuisine and fashion. Upper middle class consumers in Asia are striving to attain a quality lifestyle through brand-conscious spending. Thus, demand for luxury Western brands (for example, Gucci, Louis Vuitton, Rolex and Cartier) is growing throughout Asia's bustling cosmopolitan cities. The global luxury goods market is estimated to be worth US$80 billion a year. China is projected by Goldman Sachs to be the second largest consumer of luxury goods by 2015, second to Japan. Supported by a middle class population of around 250 million, China is estimated to have spent US$6 billion2 on luxury goods in 2006. Retail spending growth in China accelerated from 13.7 percent in 2006 to 16.3 percent in the first 10 months of 2007.
Prospects for Consumer Stocks
Given the positive demographic factors and rising affluence of the population base in the Far-East region, the outlook for consumer stocks is promising as growing consumer spending will benefit companies in the consumer sector. These companies include companies involved in the food, beverage, tobacco, household goods, fashion, textiles, apparel, footwear, and consumer electronics and appliances industries.
The services segment within the consumer sector includes companies in retailing, restaurants, services and leisure industries. Looking ahead, consumer stocks are expected to enjoy solid growth prospects given the strong economic outlook for Far-East economies. China's GDP growth is projected to sustain at 11.2 percent in 2007 and 10.6 percent in 2008 compared to 11.1 percent in 2006, while Hong Kong's economy is expected to grow at 6.0 percent and 5.2 percent for 2007 and 2008 respectively amid resilient consumer demand and robust mainland tourist arrivals.
Meanwhile, GDP growth for South Korea and Taiwan are also projected to be sustained at around 4.0 percent to 5.0 percent for 2007 and 2008 respectively amidst resilient investment spending and recovery of global demand for exports.
In the ASEAN region, domestic demand will be the major driver of economic growth. Singapore's economy is expected to expand at 7.4 percent in 2007 and 6.3 percent in 2008 driven by a booming construction sector. Malaysia's GDP growth is envisaged to sustain at about 6 percent in 2007 and 2008 while GDP growth for Indonesia is expected to accelerate from 6.5 percent in 2007 and 7.0 percent in 2008 on the back of firm commodities prices and resilient domestic demand.
Overall, Far-East Asian economies have benefited from accommodative monetary policies with interest rates kept attractively low for consumers. Thus, affordable lending rates coupled with easy availability of credit are conducive for consumer spending and economic growth. Credit card-based spending in the Far-East region is expected to trend higher, especially in emerging markets such as China where credit card usage is still relatively low.
Investors can participate in the long term-growth prospects of consumer stocks by investing in consumer sector funds. To capitalise on the robust growth of consumer spending in the Far-East region, consumer sector funds will focus their investments in companies engaged in products ranging from food, clothing, electrical appliances to services such as retailing, hotels and leisure.Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
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