TheStar
KUALA LUMPUR: Tune Money Capital Sdn Bhd, a wholly owned subsidiary of Tune Money Sdn Bhd, plans to launch a few unit trust products by June this year, subject to Securities Commision (SC) approval.
Tune Money Sdn Bhd chief executive officer Tengku Zafrul Aziz, who is also a director of Tune Money Capital, said that the latter received its fund management licence from SC on Feb 6.
“The industry totalled RM169bil last year alone, of which private funds accounted for RM72bil.
“In addition, some RM71bil lay idle in savings accounts last year and the question is how to mobilise these funds. We think there is great potential for a new player with an innovative approach,” he told a press conference yesterday.
Tune Money Capital, which boasts of a non-traditional business model, would be the first company to solely sell its unit trust products online via its own financial portal.
“We will not be using agents, thus reducing our upfront fees. Market upfront costs are about 3% to 5%. We intend to charge below this rate for our products,” Tengku Zafrul said, adding that the company had spent RM10mil to develop the portal.
He declined, however, to give details on the products until it obtains SC approval.
The company, which has a paid-up capital of RM10.5mil, plans to manage some of the funds itself while outsourcing some to local fund managers.
“We would also consider investing the funds overseas, depending on its size. Furthermore, we are only allowed to invest 50% of the assets under management overseas as per the regulations,” he added.
Tengku Zafrul said the target market for these products was those earning between RM3,000 and RM4,000 monthly, which are underserved financially.
“There are many people out there who want to invest but does not have the means under the present system,” he said.
Tune Money, which has launched three insurance products to date, plans to roll out hospital, surgical and motor insurance products by June.
Its first life insurance product would be launched by the third quarter.
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