Thursday, September 13, 2007

CIMB Private Banking unveils 2 more funds

BusinessTimes

CIMB Private Banking has launched two investment funds, tailored to help its high net worth clients achieve consistent returns by picking good value and under-researched local stocks.

The funds are defensive in nature, designed to achieve consistent returns even in times of market uncertainties, co-head of CIMB Private Banking Alan Inn said.

At least 30 per cent of the funds will be put into high dividend-yielding stocks and the fund manager may choose to invest up to 70 per cent in cash and money market instruments.
Inn was speaking to reporters after the launch of CMS Absolute Return Fund and CMS Absolute Return Syariah Fund in Kuala Lumpur yesterday.

He said the launch is timely despite the current market uncertainties arising from the US subprime housing loans issue.

Inn believes that the fundamentals of Malaysian stocks are still good, as reflected in the strong corporate earnings, robust domes-tic consumption trend and the government's expansionary initiatives.

Malaysia is also one of the more defensive markets in the region, although exter-nal factors remain the key risks to local stocks, he said.

"The impact of the US subprime problem will come and go. If you look at our long term outlook, it is fine," said CMS Asset Management Sdn Bhd portfolio manager Philip Tan, who manages the two new funds.

"Analysts are now expecting 28 per cent growth in corporate earnings this year after companies delivered above than expected results this recent quarter. The estimates will probably be revised upwards for 2008 after the fourth quarter," he added.

Tan said the funds will only buy stocks listed on the main board of Bursa Malaysia, with high earnings and growth visibility.

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.