TheEdge
KUALA LUMPUR: HLG Unit Trust Bhd is targeting 12% to 15% market returns from its newly launched HLG Global Value Fund.
The fund would invest in a diversified portfolio of undervalued equity securities in markets worldwide, thus extending investors’ opportunities for global exposure, HLG Asset Management Sdn Bhd executive director and chief executive officer Richard Lin said at the launch yesterday. The asset allocation of the fund would be a minimum 70% in global equity securities and a maximum 30% in fixed income investments.
The fund’s portfolio comprises securities of mid- to big-cap companies with at least US$500 million (RM1.68 billion) market capitalisation that were undervalued by about 20% based on fundamental research, and whose long-term earnings power were not reflected in the current market price of their securities, said Lin.
The fund has a total approved fund size of 600 million units priced at 50 sen per unit during the initial offer period from Jan 3 to Jan 23. The minimum initial investment is RM1,000.
Lin said the companies would be evaluated based on their potential corporate earnings and dividend paying capability as the fund aims to provide investors with consistent and long-term capital growth.
American-based Delaware Capital Management has been appointed the external foreign investment manager of the fund. “We will look into upsizing it to the maximum if demand is overwhelming. After the initial offer period, Delaware would like to close and we would have to reassess the fund again,” he said.
The HLG Global Value Fund brings HLG Unit Trust’s portfolio of managed funds to 26, and is part of the company’s strategy in asset under management growth.
HLG Unit Trust Bhd recorded a combined total fund size of RM2.23 billion as at Dec 27 last year and is targeting to grow it to RM4.2 billion by mid-2008, said Lin.
He added that there were several more funds in the pipeline for launch by mid-2008.
HLG Unit Trust Bhd is a wholly owned subsidiary of HLG Capital Bhd Malaysia, which is 75% owned by Hong Leong Financial Group Bhd.
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