Monday, November 19, 2007

New HLG Unit Trust fund relies on two-pronged strategies

TheEdge

KUALA LUMPUR: HLG Unit Trust Bhd has launched the HLG European Dividend-Growth Fund which adopts a combination of two investment strategies, namely the “European Dividend” defensive strategy and “European Growth” returns enhancing strategy.

Speaking to reporters here yesterday after the launch of the new fund, HLG Asset Management Sdn Bhd’s executive director and chief executive officer Richard Lin said the European Dividend strategy would provide investors with regular income, while the European Growth strategy strove to achieve medium-to-long term capital growth.

“With the European Dividend strategy, the fund would invest in European companies with attractive and sustainable dividend yields. Using the European Growth strategy, the fund would invest in European companies with anticipated earnings growth,” he said.

He said the new fund would primarily invest in a diversified investment portfolio of equities and equity-related securities of large and mid-cap European companies, as well as in fixed income securities for liquidity management and capital stability.

European-based BNP Paribas Asset Management, which manages assets of €56 billion (RM1.7 trillion) as at June 30, 2007, had been appointed the fund’s external foreign investment manager.

Richard said the fund’s performance would be benchmarked against the Morgan Stanley Capital International (MSCI) Europe Index.

He expected the new fund to be fully subscribed during the 21-day initial offer period to Dec 5.
He said HLG Unit Trust, which currently manages 25 unit trust funds, planned to launch one or two more funds by year-end and had targeted to increase its fund size to RM4 billion by next year from RM2.27 billion as at Oct 31, 2007.

The HLG European Dividend-Growth Fund has a total approved fund size of 600 million units priced at 50 sen per unit, with a minimum initial investment of RM1,000 while the minimum additional investment is RM100.

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