TheStar
KUALA LUMPUR: HLG Asset Management Sdn Bhd aims to increase its asset size to RM4.2bil by the middle of the year, almost doubling its size of RM2.23bil at end-2007.
Chief executive officer Richard Lin said HLG would kick-start the effort to increase its asset size with the launch of the RM300mil HLG Global Value Fund, comprising 600 million units priced at 50 sen each.
“We will have a few more funds in the first half of the year,” he said after the launch of the fund last Thursday.
He said the fund, which would be managed by Delaware Capital Management, was expected to give investors double-digit returns.
“The fund will also provide investors with a diversified portfolio of equity securities of companies from a wide range of industries with original listings in both developed and emerging markets worldwide,” he said.
The offer period ends Jan 23. The minimum initial investment is RM1,000 and the minimum additional investment is RM100.
Lin said the asset allocation for the fund would be a minimum 70% in global equity and a maximum 30% in fixed income investments.
On the outlook for Malaysian equities market, Lin said sentiments remained positive but investors needed to diversify their asset allocations in 2008 as there was still volatility in both the global and local equities markets.
He said the impending general election and growth of domestic consumption would be key factors for the local equities market.
“As of now, domestic consumption outlook remains positive. So, even if exports remain sluggish.
Malaysia can still record a gross domestic growth of 5%-6% boosted by domestic consumption,” he said.
Meanwhile, institutional consulting director, Citi Institutional Consulting institutional consulting director Christopher Soon said the fund would invest in a portfolio of heavyweight companies in Asia-Pacific and Europe that were considered undervalued.
”At this juncture, the fund will not be invested in the US market due to the challenges in the economy.
“Once the subprime issue settles down we will be more than happy to go into US market,” he said. – Bernama
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