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.
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