KUALA LUMPUR: AmInvestment Bank Bhd expects more than 8% returns per annum for its first fund launched this year, AmGlobal Currencies – Capital Protected.
AmBank Group chairman Tan Sri Azman Hashim said the fund was designed to take advantage of the expected strengthening of a basket of global currencies against the US dollar.
“As we enter 2008, the investment horizon looks challenging with looming factors such as surging oil and commodity prices, rising global inflation and increasing market volatility. In addition, fresh credit concerns and high trade deficits are also expected to contribute to the US downtrend,” he said at the launch of the fund yesterday.
Azman said the diversified basket of currencies comprising the Brazilian real, Russian rouble, euro, Canadian dollar, and Korean won had historically strengthened against the greenback.
From left: Datin Maznah Mahbob, Tan Sri Azman Hashim, AmInvestment Bank executive director Pushpa Rajadurai and AmBank (M) Bhd retail banking managing director Mohamed Azmi Mahmood at the launch of the fund
This was due to strong economic growth in these countries and the rising prominence of euro in international trade.
“We realised there is potential growth prospects tapping into these global currencies,” he said.
The fund will invest mainly in two-year zero-coupon negotiable instruments of deposits and an option that participates in the appreciation of the basket of currencies against the US Dollar.
“This fund is suitable for investors who want potentially better returns than bank deposit rates over a two-year investment period. It is also for investors who are risk-averse and want to preserve their capital while participating in the appreciation of these global currencies against the greenback,” Azman said.
AmGlobal Currencies – Capital Protected has an authorised fund size of 250 million units. Selling at RM1 per unit, the minimum investment amount is RM5,000 while the minimum additional investment is RM5,000.
AmInvestment funds management executive director and chief executive officer Datin Maznah Mahbob said the company planned to launch about 12 funds within this year.
“We plan to launch more capital protected, absolute returns as well as emerging growth trend funds,” she said.
With these fund launches, the unit trust division would see its total assets under management increase by 30% from RM19bil as at Jan 31, she added.
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