TheStar
KUALA LUMPUR: AmBank Group has launched its first structured deposit product, AmStructured Deposit - Global Bourses, which is expected to yield returns of 24.5% upon maturity in three years.
The three-year floating rate negotiable instrument of deposit (FRNID), pays a fixed return of 2% in the first year while the returns for year two and three are determined by the performance of eight global bourses.
The eight are London Stock Exchange Group, Deutsche Bourse AG (Germany), Bolsas y Mercados Espanoles (Spain), NYSE Euronext, InterContinental Exchange Inc, Nasdaq Stock Market Inc, Hong Kong Exchanges and Clearing Ltd, and Singapore Exchange Ltd.
Group managing director Cheah Tek Kuang said the deposit had a “catch-up coupon” structure, whereby if the performance of the underlying stocks was poor in the first and second years, depositors could still benefit from a higher coupon in the third year if the underlying stocks recovered.
“The deposit is close-ended with a targeted size of RM200mil,” he said at the launch yesterday. He said FRNID accorded capital preservation for investors and enabled them to share the benefits of the growth potential of the stocks
“In assessing the current market volatility, we find there is growth potential that can be tapped from the eight stock exchanges.
“Earnings of each stock exchange are dependent on the volume of transaction, regardless of market direction.
“In addition, the recent increasing merger and acquisition activities in all the global bourses, driven by increasing revenues from the surge in trading volume and advent of exchange-traded derivatives, greatly heightens the prospects for further gains,” Cheah said.
Minimum investment for this product is RM100,000 while the minimum additional investment is RM50,000.
AmInvestment Bank Group chief investment officer, fixed income, Yvonne Phe Kheng Peng said the group planned to launch a similar structured deposit product every quarter.
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.
Friday, March 28, 2008
HwangDBS targets 6%–8% return from latest fund
TheStar
KUALA LUMPUR: HwangDBS Investment Management Bhd targets an annual return of 6% to 8% for its newly launched Asia Aspire Capital Protected Fund that invests in Australian treasury bills and 10 global brands.
Chief executive officer and executive director Teng Chee Wai said that in a bullish market, the fund would invest in these global brands that would benefit from rising consumer spending and affluence among the Asian middle-class.
“We hope to capitalise on the increasing affluence of Asia’s households and rising consumption of the middle-income class,” he said at the launch of the fund yesterday.
The investments would be made in companies involved in the financial services, luxury fashion, consumer electronics, motor vehicles and telecommunications sectors such as Apple, Nokia, Ping An Insurance, Standard Chartered Bank and Toyota.
KUALA LUMPUR: HwangDBS Investment Management Bhd targets an annual return of 6% to 8% for its newly launched Asia Aspire Capital Protected Fund that invests in Australian treasury bills and 10 global brands.
Chief executive officer and executive director Teng Chee Wai said that in a bullish market, the fund would invest in these global brands that would benefit from rising consumer spending and affluence among the Asian middle-class.
“We hope to capitalise on the increasing affluence of Asia’s households and rising consumption of the middle-income class,” he said at the launch of the fund yesterday.
The investments would be made in companies involved in the financial services, luxury fashion, consumer electronics, motor vehicles and telecommunications sectors such as Apple, Nokia, Ping An Insurance, Standard Chartered Bank and Toyota.
From left: HwangDBS Malaysia director Alex Hwang,Teng Chee Wai and Garry Frenklah, The Royal Bank of Scotland’s managing director of global banking and market
Teng said the fund would provide Malaysian investors with an opportunity to gain from Asia’s rising affluence and their increasing scale of discretionary spending.
In a bearish market, the fund will automatically switch to defensive assets – one-month Australian treasury bills – which have a yield of 7.6% a year.
The fund is available until May 10 at selected third-arty distributors, including ABN AMRO Bank Bhd, Affin Bank Bank Bhd, Alliance Bank Malaysia Bhd, AmPrivate Banking, CIMB Wealth Advisors Bhd, EON Bank Bhd, Hong Leong Bank Bhd, RHB Bank Bhd and Standard Chartered Bank (M) Bhd.
Teng also said HwangDBS hoped to launch five to six more funds this year.
The group currently manages 26 funds with a total value of RM6bil.
New fund from Public Mutual
TheStar
KUALA LUMPUR: Public Mutual Bhd will launch on April 1 the Public China Titans Fund (PCTF), which seeks to tap into the growth prospects in the Greater China region.
Chairman Tan Sri Teh Hong Piow said PCTF offered investors the opportunity to capitalise on the growth prospects of large-cap stocks in Greater China.
“The return of funds that focus on large-cap stocks are usually considered more stable than small-cap funds as larger corporations are better positioned to weather economic cycles due their sheer size, stronger cash flows and dominance in their respective industries,” he said in a statement yesterday.
PCTF is an equity fund that seeks to achieve capital growth over the medium to long term by investing up to 98% of its net asset value in companies with market capitalisation of RM10bil and above in China, Hong Kong and Taiwan, and China-based companies listed on overseas markets.
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.
KUALA LUMPUR: Public Mutual Bhd will launch on April 1 the Public China Titans Fund (PCTF), which seeks to tap into the growth prospects in the Greater China region.
Chairman Tan Sri Teh Hong Piow said PCTF offered investors the opportunity to capitalise on the growth prospects of large-cap stocks in Greater China.
“The return of funds that focus on large-cap stocks are usually considered more stable than small-cap funds as larger corporations are better positioned to weather economic cycles due their sheer size, stronger cash flows and dominance in their respective industries,” he said in a statement yesterday.
PCTF is an equity fund that seeks to achieve capital growth over the medium to long term by investing up to 98% of its net asset value in companies with market capitalisation of RM10bil and above in China, Hong Kong and Taiwan, and China-based companies listed on overseas markets.
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.
Wednesday, March 26, 2008
Remain Calm Through Market Turbulence
PublicMutual
In the wake of the turbulence of stock markets in recent months, unit trust investors may be tempted to either sell or buy. However, investors are advised to remain calm and practise dollar cost averaging with their long-term goals in view.
When regional and global markets succumbed to panic selling in August 2007 and more recently in January 2008, the severity and sharpness of the correction was large enough to make unit trust investors ask themselves whether they should redeem now to stem further losses or buy more units at currently low prices.
In fact, if they practise dollar cost averaging, they need not concern themselves with these timing issues. Dollar cost averaging enables investors to automatically buy more units when prices fall and fewer units when prices rise.
It is especially during times of market volatility that individual investors should remain focused on their long-term investment goals and keep their emotions from influencing their investment decisions. A disciplined and methodical approach to investing is the key to long-term investment success.
Unit trust investors are advised to buy and hold their investments for the medium to long term.
The buy-and-hold principle is based on the notion that a good investment will generate reasonably attractive returns over the medium to long term.
This also means that investors are able to distinguish between daily movements in the market and the underlying long-term value of their investments.
Professional fund managers buy and hold for the medium to long term as they are prepared to wait patiently over several years for their investments to reach their intrinsic or fair values. For the unit trust investor, the 'buy-and-hold' strategy can also be applied by holding on to a well-selected unit trust fund over a period of at least three years.
There are some investors who believe they can achieve superior returns by timing the purchase and redemption of equity funds to profit from the stockmarket's short-term movements. These investors are tempted to engage in timing the market especially in an environment where equity markets are volatile. Such investors who wish to make quick gains in the stock market by switching from one fund into another fund will often be disappointed.
Market timing strategies that are often recommended by 'investment experts' have seldom been successful. This is because stock markets are inherently volatile and are impossible to predict with numerous factors, both domestic and foreign, affecting daily and weekly fluctuations in stock prices.
Investors who wish to take a more active approach with their investments by timing the market will expose themselves to many risks. In order to profit from the market's short-term trends, the investor has to correctly predict the market's trend and its turning points.
Without the appropriate skills to discern signals and time the entries and exits, the market timer may not only miss opportunities, but also potentially suffer the blow of rapid losses. Also with a higher frequency of fund switching, investors will have to incur increased transaction costs.
Investors who are concerned about market volatility are advised to practise dollar cost averaging as this strategy enables investors to focus on the long-term investment goal and not worry about the prevailing level of the market.
Dollar cost averaging is simply investing a fixed amount of money in a financial asset (such as a unit trust fund) on a regular basis (monthly, quarterly, biannual) regardless of the market cycle. By investing a fixed amount on a regular basis, investors will buy more units when the market is lower and fewer units when the market is higher. This strategy will produce a lower average cost of investment than the average market price over any given period.
In addition, investors are also advised to rebalance their portfolios regularly at least once a year to ensure that their portfolio allocation reflects their investment objectives and risk profile. Thus if, as a result of an uptrend in stock prices, an investor's equity exposure has exceeded a level consistent with his risk tolerance, he can trim a portion of the equity funds and switch into bond or money market funds to rebalance the asset allocation accordingly.
Maintaining a target asset allocation reduces the risk that the portfolio becomes too concentrated in a single asset class.
In conclusion, unit trust investors should always focus on achieving their medium to long-term investment goals. The practice of dollar cost averaging and regular portfolio rebalancing are effective tools that help investors remain focused on the long term horizon and prevent them from over-reacting to short-term movements of the stockmarket.
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.
In the wake of the turbulence of stock markets in recent months, unit trust investors may be tempted to either sell or buy. However, investors are advised to remain calm and practise dollar cost averaging with their long-term goals in view.
When regional and global markets succumbed to panic selling in August 2007 and more recently in January 2008, the severity and sharpness of the correction was large enough to make unit trust investors ask themselves whether they should redeem now to stem further losses or buy more units at currently low prices.
In fact, if they practise dollar cost averaging, they need not concern themselves with these timing issues. Dollar cost averaging enables investors to automatically buy more units when prices fall and fewer units when prices rise.
It is especially during times of market volatility that individual investors should remain focused on their long-term investment goals and keep their emotions from influencing their investment decisions. A disciplined and methodical approach to investing is the key to long-term investment success.
Unit trust investors are advised to buy and hold their investments for the medium to long term.
The buy-and-hold principle is based on the notion that a good investment will generate reasonably attractive returns over the medium to long term.
This also means that investors are able to distinguish between daily movements in the market and the underlying long-term value of their investments.
Professional fund managers buy and hold for the medium to long term as they are prepared to wait patiently over several years for their investments to reach their intrinsic or fair values. For the unit trust investor, the 'buy-and-hold' strategy can also be applied by holding on to a well-selected unit trust fund over a period of at least three years.
There are some investors who believe they can achieve superior returns by timing the purchase and redemption of equity funds to profit from the stockmarket's short-term movements. These investors are tempted to engage in timing the market especially in an environment where equity markets are volatile. Such investors who wish to make quick gains in the stock market by switching from one fund into another fund will often be disappointed.
Market timing strategies that are often recommended by 'investment experts' have seldom been successful. This is because stock markets are inherently volatile and are impossible to predict with numerous factors, both domestic and foreign, affecting daily and weekly fluctuations in stock prices.
Investors who wish to take a more active approach with their investments by timing the market will expose themselves to many risks. In order to profit from the market's short-term trends, the investor has to correctly predict the market's trend and its turning points.
Without the appropriate skills to discern signals and time the entries and exits, the market timer may not only miss opportunities, but also potentially suffer the blow of rapid losses. Also with a higher frequency of fund switching, investors will have to incur increased transaction costs.
Investors who are concerned about market volatility are advised to practise dollar cost averaging as this strategy enables investors to focus on the long-term investment goal and not worry about the prevailing level of the market.
Dollar cost averaging is simply investing a fixed amount of money in a financial asset (such as a unit trust fund) on a regular basis (monthly, quarterly, biannual) regardless of the market cycle. By investing a fixed amount on a regular basis, investors will buy more units when the market is lower and fewer units when the market is higher. This strategy will produce a lower average cost of investment than the average market price over any given period.
In addition, investors are also advised to rebalance their portfolios regularly at least once a year to ensure that their portfolio allocation reflects their investment objectives and risk profile. Thus if, as a result of an uptrend in stock prices, an investor's equity exposure has exceeded a level consistent with his risk tolerance, he can trim a portion of the equity funds and switch into bond or money market funds to rebalance the asset allocation accordingly.
Maintaining a target asset allocation reduces the risk that the portfolio becomes too concentrated in a single asset class.
In conclusion, unit trust investors should always focus on achieving their medium to long-term investment goals. The practice of dollar cost averaging and regular portfolio rebalancing are effective tools that help investors remain focused on the long term horizon and prevent them from over-reacting to short-term movements of the stockmarket.
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.
Economists forecast 5.6pc growth for Malaysia
BusinessTimes
MALAYSIA'S economy is expected to expand at a much slower clip this year, due to global uncertainties surrounding the depth of the slowdown in the US.A Business Times poll showed that on average economists are looking for modest growth of 5.62 per cent this year, with domestic demand driving this growth.
They also expect economic activities to accelerate once the "political dust" from the recent general election is settled.
The country's gross domestic product (GDP) is also set to improve in the second half of 2008 when the fiscal stimulus following the US Federal Reserve's aggressive interest rate cuts provide some boost to the US economy.
The Finance Ministry has projected a six per cent to 6.5 per cent growth for 2008, but most of the economists including Affin Investment Bank economist Alan Tan expect Bank Negara Malaysia to forecast lower growth projections in view of the external uncertainties.
Bank Negara will announce its economic growth projection for the country for 2008 in its annual report released today. The economy grew at 6.3 per cent last year, the strongest showing since 2004, on higher domestic demand.
"In view of the global uncertainties, Bank Negara is likely to scale down the GDP growth forecast to between 5.5 per cent and six per cent," said Tan.
"We believe it will highlight downside risks to the growth projection including the US subprime mortgage crisis and credit crunch problems that could decelerate US consumer spending, forcing the economy into a sharp slowdown," he added.
Other downside risks to Malaysia's GDP growth forecast are high oil prices, rising inflation, weakening US dollar outlook as well as possible delays of major government projects and investment spending by the private sector with the new political landscape, he said.
Action Economics director of Asian Economic Forecasting David Cohen said first quarter 2008 showed economies in the region were holding up well despite the drag from the US economy.
Most of the economies in the region such as Singapore, the Philippines and Indonesia have been registering a five per cent GDP growth, he said.
However, these economies have not decoupled from the US economy and will experience slower growth this year.
The Asean economies stand to benefit from the higher oil prices despite inflationary pressures building up.
On inflationary risks, economists polled expect the country's consumer price index to grow at 2.96 per cent year-on-year, but the figure may increase depending on when the government decides to cut fuel subsidies.
Aseambankers chief economist Suhaimi Ilias said against a backdrop of escalating global food prices, Malaysia would need another year of relief before the move to cut fuel subsidies is considered.
"Domestic demand will continue to drive the economy. Although exports are expected to have a better showing than last year, it will not be sufficient and will still pose a challenge," he said.
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.
MALAYSIA'S economy is expected to expand at a much slower clip this year, due to global uncertainties surrounding the depth of the slowdown in the US.A Business Times poll showed that on average economists are looking for modest growth of 5.62 per cent this year, with domestic demand driving this growth.
They also expect economic activities to accelerate once the "political dust" from the recent general election is settled.
The country's gross domestic product (GDP) is also set to improve in the second half of 2008 when the fiscal stimulus following the US Federal Reserve's aggressive interest rate cuts provide some boost to the US economy.
The Finance Ministry has projected a six per cent to 6.5 per cent growth for 2008, but most of the economists including Affin Investment Bank economist Alan Tan expect Bank Negara Malaysia to forecast lower growth projections in view of the external uncertainties.
Bank Negara will announce its economic growth projection for the country for 2008 in its annual report released today. The economy grew at 6.3 per cent last year, the strongest showing since 2004, on higher domestic demand.
"In view of the global uncertainties, Bank Negara is likely to scale down the GDP growth forecast to between 5.5 per cent and six per cent," said Tan.
"We believe it will highlight downside risks to the growth projection including the US subprime mortgage crisis and credit crunch problems that could decelerate US consumer spending, forcing the economy into a sharp slowdown," he added.
Other downside risks to Malaysia's GDP growth forecast are high oil prices, rising inflation, weakening US dollar outlook as well as possible delays of major government projects and investment spending by the private sector with the new political landscape, he said.
Action Economics director of Asian Economic Forecasting David Cohen said first quarter 2008 showed economies in the region were holding up well despite the drag from the US economy.
Most of the economies in the region such as Singapore, the Philippines and Indonesia have been registering a five per cent GDP growth, he said.
However, these economies have not decoupled from the US economy and will experience slower growth this year.
The Asean economies stand to benefit from the higher oil prices despite inflationary pressures building up.
On inflationary risks, economists polled expect the country's consumer price index to grow at 2.96 per cent year-on-year, but the figure may increase depending on when the government decides to cut fuel subsidies.
Aseambankers chief economist Suhaimi Ilias said against a backdrop of escalating global food prices, Malaysia would need another year of relief before the move to cut fuel subsidies is considered.
"Domestic demand will continue to drive the economy. Although exports are expected to have a better showing than last year, it will not be sufficient and will still pose a challenge," he said.
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.
Latest CIMB-Principal fund to invest in Asia
TheStar
KUALA LUMPUR: CIMB-Principal Asset Management Bhd yesterday launched the CIMB-Principal Asia Infrastructure Fund that aims to invest in fast-growing and high-return Asian companies involved in infrastructure activities.
The fund, which has an approved size of 300 million units at 50 sen each, is a feeder fund that will invest in Invesco Asia Infrastructure Fund.
CIMB-Principal Asset Management chief executive Datuk Noripah Kamso said the feeder fund would use the money raised to invest in Asia’s booming infrastructure needs.
Several hundred billion dollars are expected to be spent on infrastructure throughout Asia, which would result in a sustained strong demand for companies in the Asian infrastructure sector.
Noripah said the long-term duration of infrastructure assets meant it would also be less affected by volatility and investors stood to benefit from Invesco’s track record.
For the past year, the Invesco fund, which invests predominantly in companies in China, India, Hong Kong, South Korea and Australia, had returns of 42%.
“Since infrastructure projects typically run for over 10 years or more, infrastructure companies often demonstrate sustainable and stable earnings growth,” Noripah said.
“The CIMB-Principal Asia Infrastructure Equity Fund, in particular, seeks investments in infrastructure securities that will enjoy a potentially steady, long-term stream.”
The minimum investment in this fund is RM1,000 and the fund’s initial offer period ends on April 14.
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.
KUALA LUMPUR: CIMB-Principal Asset Management Bhd yesterday launched the CIMB-Principal Asia Infrastructure Fund that aims to invest in fast-growing and high-return Asian companies involved in infrastructure activities.
The fund, which has an approved size of 300 million units at 50 sen each, is a feeder fund that will invest in Invesco Asia Infrastructure Fund.
CIMB-Principal Asset Management chief executive Datuk Noripah Kamso said the feeder fund would use the money raised to invest in Asia’s booming infrastructure needs.
Several hundred billion dollars are expected to be spent on infrastructure throughout Asia, which would result in a sustained strong demand for companies in the Asian infrastructure sector.
Noripah said the long-term duration of infrastructure assets meant it would also be less affected by volatility and investors stood to benefit from Invesco’s track record.
For the past year, the Invesco fund, which invests predominantly in companies in China, India, Hong Kong, South Korea and Australia, had returns of 42%.
“Since infrastructure projects typically run for over 10 years or more, infrastructure companies often demonstrate sustainable and stable earnings growth,” Noripah said.
“The CIMB-Principal Asia Infrastructure Equity Fund, in particular, seeks investments in infrastructure securities that will enjoy a potentially steady, long-term stream.”
The minimum investment in this fund is RM1,000 and the fund’s initial offer period ends on April 14.
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.
Fund managers await more details
TheStar
PETALING JAYA: Fund managers are maintaining their current investment strategies as they seek more details on the workings of the proposed Bursa Malaysia unified board.
A fund manager told StarBiz: “Although the listing requirements of the unified board have been lowered to that of the current second board (in terms of profit track record), we still need the details and time to analyse before deciding on an investment strategy.
“We need more details on how the unified board will work for more established companies with strong track records.”
The Securities Commission, in a statement yesterday, said the main and second boards would be merged into a unified board for companies with an established profit track record where the qualifying criteria for listing would be based on that for the second board currently.
Most fund managers said it was still too premature to tell whether having a unified board would be favourable for the investing public and institutions although it would become easier to make initial public offerings.
“I think most fund managers, especially foreign ones, do not go for quantity but quality stocks.
“If the proposed framework is to raise the standard or the quality, and control the listing of ‘doubtful’ businesses (cut down on the number of small and illiquid companies), then it's a good move.
“But then again, more details are needed before they'll jump into the market,” another fund manager said.
He also said the decision to invest would also depend on a particular fund's mandate, i.e. whether it invests in small-cap stocks or blue chips.
“Most funds will not be affected as the fund managers choose a stock based on its market capitalisation and not the board on which it is listed,'' he added.
The fund manager said Bursa was “not as popular as other exchanges now and it is more important to attract more players, especially foreigners, to Malaysia.
“In this regard, any measures to boost liquidity and quality will certainly help to promote the Malaysian stock market.
“A 'flip-flop policy' is not welcome.”
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.
PETALING JAYA: Fund managers are maintaining their current investment strategies as they seek more details on the workings of the proposed Bursa Malaysia unified board.
A fund manager told StarBiz: “Although the listing requirements of the unified board have been lowered to that of the current second board (in terms of profit track record), we still need the details and time to analyse before deciding on an investment strategy.
“We need more details on how the unified board will work for more established companies with strong track records.”
The Securities Commission, in a statement yesterday, said the main and second boards would be merged into a unified board for companies with an established profit track record where the qualifying criteria for listing would be based on that for the second board currently.
Most fund managers said it was still too premature to tell whether having a unified board would be favourable for the investing public and institutions although it would become easier to make initial public offerings.
“I think most fund managers, especially foreign ones, do not go for quantity but quality stocks.
“If the proposed framework is to raise the standard or the quality, and control the listing of ‘doubtful’ businesses (cut down on the number of small and illiquid companies), then it's a good move.
“But then again, more details are needed before they'll jump into the market,” another fund manager said.
He also said the decision to invest would also depend on a particular fund's mandate, i.e. whether it invests in small-cap stocks or blue chips.
“Most funds will not be affected as the fund managers choose a stock based on its market capitalisation and not the board on which it is listed,'' he added.
The fund manager said Bursa was “not as popular as other exchanges now and it is more important to attract more players, especially foreigners, to Malaysia.
“In this regard, any measures to boost liquidity and quality will certainly help to promote the Malaysian stock market.
“A 'flip-flop policy' is not welcome.”
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.
Wednesday, March 19, 2008
EPF to invest another US$2b overseas
BusinessTimes
Total funds approved for foreign investments to date amounts to US$6 billion, says the Malaysian pension fund
THE Employees Provident Fund (EPF) has received the Finance Ministry's approval to invest another US$2 billion (RM6.36 billion) overseas this year, as it seeks to generate better returns for its members. The pension fund, which has 11.7 million members, has invested US$1.6 billion (RM5.08 billion) in overseas equities so far.
EPF chairman Tan Sri Samsudin Osman said with the latest approval, total funds approved for foreign investments to date amounts to US$6 billion (RM19.08 billion). This is about 5.8 per cent of EPF's total funds of RM319.3 billion as at January 2008.
"In Malaysia, the EPF will be outsourcing an additional RM1 billion to its equity portfolio managers and RM500 million to its fixed income managers.
"The funds will be disbursed sometime in the early second quarter of this year," Samsudin said at the external portfolio managers award ceremony in Kuala Lumpur yesterday.
Under the equity category, the EPF has allocated RM100 million to Hwang DBS Investment Management Sdn Bhd, CMS Asset Management Sdn Bhd (RM200 million), Pheim Asset Management Sdn Bhd (RM300 million) and Nomura Asset Management Malaysia Sdn Bhd (RM400 million).
In the fixed income segment, it has distributed RM200 million and RM300 million to CIMB Principal Asset Management Sdn Bhd and AmInvestment Management Sdn Bhd respectively.
Samsudin said EPF's assets grew from RM259.9 billion in 2006 to RM285.9 billion in 2007 to realise a dividend of 5.8 per cent..
"EPF's assets are expected to grow to RM346 billion in 2008 and to maintain the same dividend rate we would need to generate realised earnings of RM19.2 billion," he said.
Meanwhile, Nomura Asset was named the best overall equity portfolio manager for 2007. Pheim and CMS were picked as first and second runner-ups respectively. Meanwhile, AmInvestment Management Sdn Bhd won the best overall fixed income portfolio manager.
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.
Total funds approved for foreign investments to date amounts to US$6 billion, says the Malaysian pension fund
THE Employees Provident Fund (EPF) has received the Finance Ministry's approval to invest another US$2 billion (RM6.36 billion) overseas this year, as it seeks to generate better returns for its members. The pension fund, which has 11.7 million members, has invested US$1.6 billion (RM5.08 billion) in overseas equities so far.
EPF chairman Tan Sri Samsudin Osman said with the latest approval, total funds approved for foreign investments to date amounts to US$6 billion (RM19.08 billion). This is about 5.8 per cent of EPF's total funds of RM319.3 billion as at January 2008.
"In Malaysia, the EPF will be outsourcing an additional RM1 billion to its equity portfolio managers and RM500 million to its fixed income managers.
"The funds will be disbursed sometime in the early second quarter of this year," Samsudin said at the external portfolio managers award ceremony in Kuala Lumpur yesterday.
Under the equity category, the EPF has allocated RM100 million to Hwang DBS Investment Management Sdn Bhd, CMS Asset Management Sdn Bhd (RM200 million), Pheim Asset Management Sdn Bhd (RM300 million) and Nomura Asset Management Malaysia Sdn Bhd (RM400 million).
In the fixed income segment, it has distributed RM200 million and RM300 million to CIMB Principal Asset Management Sdn Bhd and AmInvestment Management Sdn Bhd respectively.
Samsudin said EPF's assets grew from RM259.9 billion in 2006 to RM285.9 billion in 2007 to realise a dividend of 5.8 per cent..
"EPF's assets are expected to grow to RM346 billion in 2008 and to maintain the same dividend rate we would need to generate realised earnings of RM19.2 billion," he said.
Meanwhile, Nomura Asset was named the best overall equity portfolio manager for 2007. Pheim and CMS were picked as first and second runner-ups respectively. Meanwhile, AmInvestment Management Sdn Bhd won the best overall fixed income portfolio manager.
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.
HwangDBS IM declares distribution for 2 global funds
TheEdge
KUALA LUMPUR: HwangDBS Investment Management Bhd has declared a final distribution of five sen and an interim distribution of 1.5 sen for two of its global feeder funds, the HwangDBS Global Opportunities Fund (GOF) and the HwangDBS Global Property Fund (GPF), for all registered unit holders as at Feb 28, 2008.
In a statement yesterday, HwangDBS IM said GOF’s distribution, the first since its launch on July 18, 2006, for the year ended Jan 31, 2008 translated into an 8.23% return on the net asset value per unit and all unit holders registered as at Feb 28, 2008 were eligible to receive the income allotment.
HwangDBS IM said GOF’s performance since its inception had been favourable having chartered a 28.28% growth, outperforming its MSCI World Free Index benchmark by 30.06%, which chartered a negative growth rate of 2.03%.
It said GPF’s third income distribution since its inception on April 19, 2006 of 1.5 sen translated into a 3.46% return. It said GPF outperformed its benchmark, the UBS Warburg Global Real Estate Investor Index, by 1.96% from April 2006 to April 2007.
“Amidst the weak macroeconomic sentiments, there may be less bad news in US macroeconomic outlook, at least in second half of 2008 onwards as some companies in the US are already well-positioned to navigate through the economic challenges; Coca-Cola and IBM posting better-than-expected profits from strong sales growth in the emerging markets, offsetting the domestic slowdown,” HwangDBS IM chief executive officer and executive director Teng Chee Wai said.
“Similarly the first-quarter profits of big US companies such as Apple Inc were better-than-expected, reporting the best quarterly revenue and earnings in Apple’s history on the strong resilient demand for its products such as the Mac, iPod and iPhone5,” he said.
“There are two points that I am trying to put forward — despite the overall market uncertainties in today’s global economy outlook, there is still some hope, as there are corporations in the economies that have strong management team with an eye to capture opportunities amidst uncertainties.”
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.
KUALA LUMPUR: HwangDBS Investment Management Bhd has declared a final distribution of five sen and an interim distribution of 1.5 sen for two of its global feeder funds, the HwangDBS Global Opportunities Fund (GOF) and the HwangDBS Global Property Fund (GPF), for all registered unit holders as at Feb 28, 2008.
In a statement yesterday, HwangDBS IM said GOF’s distribution, the first since its launch on July 18, 2006, for the year ended Jan 31, 2008 translated into an 8.23% return on the net asset value per unit and all unit holders registered as at Feb 28, 2008 were eligible to receive the income allotment.
HwangDBS IM said GOF’s performance since its inception had been favourable having chartered a 28.28% growth, outperforming its MSCI World Free Index benchmark by 30.06%, which chartered a negative growth rate of 2.03%.
It said GPF’s third income distribution since its inception on April 19, 2006 of 1.5 sen translated into a 3.46% return. It said GPF outperformed its benchmark, the UBS Warburg Global Real Estate Investor Index, by 1.96% from April 2006 to April 2007.
“Amidst the weak macroeconomic sentiments, there may be less bad news in US macroeconomic outlook, at least in second half of 2008 onwards as some companies in the US are already well-positioned to navigate through the economic challenges; Coca-Cola and IBM posting better-than-expected profits from strong sales growth in the emerging markets, offsetting the domestic slowdown,” HwangDBS IM chief executive officer and executive director Teng Chee Wai said.
“Similarly the first-quarter profits of big US companies such as Apple Inc were better-than-expected, reporting the best quarterly revenue and earnings in Apple’s history on the strong resilient demand for its products such as the Mac, iPod and iPhone5,” he said.
“There are two points that I am trying to put forward — despite the overall market uncertainties in today’s global economy outlook, there is still some hope, as there are corporations in the economies that have strong management team with an eye to capture opportunities amidst uncertainties.”
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.
CIMB-Principal launches Islamic money market fund
TheEdge
KUALA LUMPUR: CIMB-Principal Asset Management Bhd has launched an Islamic money market fund as a tax-efficient alternative to traditional bank deposits that allows investors to wait out and see through the current market volatility by parking their funds in instruments with minimal risk.
In a statement yesterday, CIMB-Principal said CIMB Islamic Money Market Fund, a syariah-compliant fund that invests in short-term money market instruments maturing in less than a year, allowed investors to withdraw their cash anytime without penalty.
“The CIMB Islamic Money Market Fund gives investors a place to park their money with minimal risk. This fund also aims to provide stability by giving investors a potential steady stream of monthly income,” CIMB-Princiapl chief executive Datuk Noripah Kamso.
The Islamic money market instruments include Islamic accepted bills, Islamic negotiable instruments of deposit, Islamic repurchase agreements (Repo-I) as well as other Islamic fixed income instruments and placements of Islamic deposits with licensed financial institutions, all of which are highly liquid.
“Investors who are in the midst of restructuring their portfolio or simply waiting for the opportune time to make their next investment move will find CIMB Islamic Money Market Fund a suitable investment,” Noripah said. With an approved fund size of 100 million units, the minimum investment for the fund is RM5,000, with a unit selling price of RM1.
She said the new fund would invest 10% of its net asset value (NAV) in Islamic fixed income instruments and up to 90% in quality Islamic money market instruments. The fund is distributed by CIMB Wealth Advisors, CIMB Bank, CIMB Private Banking and Standard Chartered Bank.
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.
KUALA LUMPUR: CIMB-Principal Asset Management Bhd has launched an Islamic money market fund as a tax-efficient alternative to traditional bank deposits that allows investors to wait out and see through the current market volatility by parking their funds in instruments with minimal risk.
In a statement yesterday, CIMB-Principal said CIMB Islamic Money Market Fund, a syariah-compliant fund that invests in short-term money market instruments maturing in less than a year, allowed investors to withdraw their cash anytime without penalty.
“The CIMB Islamic Money Market Fund gives investors a place to park their money with minimal risk. This fund also aims to provide stability by giving investors a potential steady stream of monthly income,” CIMB-Princiapl chief executive Datuk Noripah Kamso.
The Islamic money market instruments include Islamic accepted bills, Islamic negotiable instruments of deposit, Islamic repurchase agreements (Repo-I) as well as other Islamic fixed income instruments and placements of Islamic deposits with licensed financial institutions, all of which are highly liquid.
“Investors who are in the midst of restructuring their portfolio or simply waiting for the opportune time to make their next investment move will find CIMB Islamic Money Market Fund a suitable investment,” Noripah said. With an approved fund size of 100 million units, the minimum investment for the fund is RM5,000, with a unit selling price of RM1.
She said the new fund would invest 10% of its net asset value (NAV) in Islamic fixed income instruments and up to 90% in quality Islamic money market instruments. The fund is distributed by CIMB Wealth Advisors, CIMB Bank, CIMB Private Banking and Standard Chartered Bank.
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.
Prudential Fund’s new fund to invest in ETFs
TheEdge
KUALA LUMPUR: Prudential Fund Management Bhd (PFMB) has launched its 35th fund that aims to offset investors’ fears by providing them with capital growth over the medium to long term through investments in a diversified portfolio of exchanged traded funds (ETFs).
With an approved size of 1.2 billion units, Prudential Country Selection Fund will invest at least 95% of its net asset value in ETFs that are liquid. It is structured as a fund of funds and will be investing in at least five different ETFs, which are chosen from 22 pre-selected ETFs.
“We choose to launch this fund at this time because we feel that it is an opportune time to do so seeing that investors are concerned about the volatile conditions in the global market.
“Historical data has shown that there will always be countries that strategically outperform others. The fund mitigates global market risks by strategically diversifying its investments in the selected five performing ETFs,” said PFMB chief executive officer Mark Toh.
He said the fund managers would re-rank the ETFs every month and rebalance the portfolio accordingly. “That way, no matter what the market conditions are the fund is expected to maximise the potential of your investments,” he said in a statement in conjunction with the fund’s launch here yesterday.
“These 22 equity markets will then be ranked according to expected future performance using a total of 17 macroeconomic and fundamental research inputs. As always, we are cautiously optimistic that the fund will be well received considering that most of our distributing partners will be distributing the product,” said Toh.
The Prudential Country Selection Fund will be available for subscription from today at 25 sen per unit for a minimum investment of RM1,000. The initial offer period will end April 7.
PFMB currently manages Prudential Assurance Malaysia Bhd and Prudential BSN Takaful funds.
With the latest launch, PFMB assets under management have grown to over RM12.6 billion consisting of over RM3.7 billion from the retail unit trust business and some RM8.9 billion from private mandate. PFMB now manages 35 unit trust funds.
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.
KUALA LUMPUR: Prudential Fund Management Bhd (PFMB) has launched its 35th fund that aims to offset investors’ fears by providing them with capital growth over the medium to long term through investments in a diversified portfolio of exchanged traded funds (ETFs).
With an approved size of 1.2 billion units, Prudential Country Selection Fund will invest at least 95% of its net asset value in ETFs that are liquid. It is structured as a fund of funds and will be investing in at least five different ETFs, which are chosen from 22 pre-selected ETFs.
“We choose to launch this fund at this time because we feel that it is an opportune time to do so seeing that investors are concerned about the volatile conditions in the global market.
“Historical data has shown that there will always be countries that strategically outperform others. The fund mitigates global market risks by strategically diversifying its investments in the selected five performing ETFs,” said PFMB chief executive officer Mark Toh.
He said the fund managers would re-rank the ETFs every month and rebalance the portfolio accordingly. “That way, no matter what the market conditions are the fund is expected to maximise the potential of your investments,” he said in a statement in conjunction with the fund’s launch here yesterday.
“These 22 equity markets will then be ranked according to expected future performance using a total of 17 macroeconomic and fundamental research inputs. As always, we are cautiously optimistic that the fund will be well received considering that most of our distributing partners will be distributing the product,” said Toh.
The Prudential Country Selection Fund will be available for subscription from today at 25 sen per unit for a minimum investment of RM1,000. The initial offer period will end April 7.
PFMB currently manages Prudential Assurance Malaysia Bhd and Prudential BSN Takaful funds.
With the latest launch, PFMB assets under management have grown to over RM12.6 billion consisting of over RM3.7 billion from the retail unit trust business and some RM8.9 billion from private mandate. PFMB now manages 35 unit trust funds.
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.
New AmInvestment fund sets high target
TheStar
KUALA LUMPUR: AmInvestment Bank Bhd is targeting for its AmGlobal Emerging Market Opportunities fund, which taps on the cream of emerging markets, to outperform the MSCI emerging market index's 33% annual returns.
Managing director T.C. Kok said emerging markets such as Brazil, Russia, Turkey, South Korea and Thailand were set for strong growth and would continue to outpace the mature economies.
“With their natural resources, rising middle class, low-cost labouras well as massive economic and structural improvements in recent years, the emerging markets have outpaced the developed markets,” he said at the launch yesterday.
Kok said as the emerging markets were less reliant on the US and developed market, they would, therefore, be less affected by the downturn in these countries.
Being a feeder fund, AmGlobal Emerging Market Opportunities will invest a minimum of 95% of its net asset value (NAV) into Schroder International Selection Fund (ISF) Global Emerging Market Opportunities while maintaining up to a maximum of 5% in liquid assets.
The target fund would be managed by Schroder Investment Management (S) Ltd.
Kok said the target fund would have a unique investment strategy and an absolute return target as it sought to take an aggressive approach in both bull and bear markets.
He said that the fund – AmInvestment's second to be launched this year – would fully invest in the most attractive stocks within the selected top six emerging markets globally if the macro outlook for the emerging market was positive.
“When the economic outlook is uncertain, the fund has the flexibility to strategically move up to 30% into cash and 30% into bonds,” he said, adding that this distinctive investment strategy was more dynamic than a typical emerging markets fund.
AmGlobal Emerging Market Opportunities has an authorised fund size of 300 million units.
The fund is offered to the public at RM1 per unit during the initial offer period from March 18 to April 9.
The minimum investment amount is RM1,000 while the minimum additional investment is RM500.
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.
KUALA LUMPUR: AmInvestment Bank Bhd is targeting for its AmGlobal Emerging Market Opportunities fund, which taps on the cream of emerging markets, to outperform the MSCI emerging market index's 33% annual returns.
Managing director T.C. Kok said emerging markets such as Brazil, Russia, Turkey, South Korea and Thailand were set for strong growth and would continue to outpace the mature economies.
“With their natural resources, rising middle class, low-cost labouras well as massive economic and structural improvements in recent years, the emerging markets have outpaced the developed markets,” he said at the launch yesterday.
Kok said as the emerging markets were less reliant on the US and developed market, they would, therefore, be less affected by the downturn in these countries.
Being a feeder fund, AmGlobal Emerging Market Opportunities will invest a minimum of 95% of its net asset value (NAV) into Schroder International Selection Fund (ISF) Global Emerging Market Opportunities while maintaining up to a maximum of 5% in liquid assets.
The target fund would be managed by Schroder Investment Management (S) Ltd.
Kok said the target fund would have a unique investment strategy and an absolute return target as it sought to take an aggressive approach in both bull and bear markets.
He said that the fund – AmInvestment's second to be launched this year – would fully invest in the most attractive stocks within the selected top six emerging markets globally if the macro outlook for the emerging market was positive.
“When the economic outlook is uncertain, the fund has the flexibility to strategically move up to 30% into cash and 30% into bonds,” he said, adding that this distinctive investment strategy was more dynamic than a typical emerging markets fund.
AmGlobal Emerging Market Opportunities has an authorised fund size of 300 million units.
The fund is offered to the public at RM1 per unit during the initial offer period from March 18 to April 9.
The minimum investment amount is RM1,000 while the minimum additional investment is RM500.
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.
Monday, March 17, 2008
Fund managers hopeful of changes in govt policy-making processes
TheEdge
KUALA LUMPUR: Fund managers and institutional investors are hoping to see positive changes in the policy-making processes of the new Cabinet, which could be announced as early as Monday.
CMS Dresdner Asset Management Sdn Bhd’s managing director Scott Lim said Prime Minister Datuk Seri Abdullah Ahmad Badawi could appoint new faces to the Cabinet but it was more important to look at the policies implemented by the new line-up.
“Even if they put up new faces, they can behave in the same old way. I am not putting much expectation on the (new) Cabinet line-up. At the end of the day, it is what they do,” he told The Edge in a telephone interview yesterday.
Lim said the government should make some drastic changes to ensure it would come up with policies that serve the interest of the people rather than enriching an elite group.
In the past, the government’s image was battered when it failed to tackle issues such as the granting of approved permits to parties linked to politicians and the Port Klang Free Zone controversy, he added.
“Who runs the government does not matter to me. It is whether the government can make good decisions. It is as simple as that,” Lim said.
Asked what would happen if the new Cabinet line-up failed to win the people’s confidence, he said: “That was what got the government into trouble the last time.”
Lim said it would not be sufficient for Abdullah to just replace one or two ministers as the Cabinet had a collective responsibility.
“Last time, the people were expecting him (Abdullah) to make some changes. He didn’t and the people voted differently,” he said, adding that the people would also be looking at whether Abdullah would make any changes this time.
Lim also recognised that Abdullah would be torn between retaining experienced ministers who may have integrity issues and welcoming inexperienced people who lack track record.
Meanwhile, MIMB Investment Bank Bhd’s head of research Pong Teng Siew expects to see major changes in the Cabinet line-up. He said it could be positive if the new ministers could come up with new ideas.
“It will be good to see some technocrats joining the government. Someone who is not a politician, someone at the lower level of the party but has the competency to oversee a ministry,” he said.
Pong also said the government should consider reviewing its policy of consultation behind closed doors as some people may feel their representatives were not voicing up their concerns.
Citing the example of incoming Selangor Mentri Besar Tan Sri Khalid Ibrahim’s policy of giving progress report to the people, he said it could be useful if the new federal government could give similar feedback.
“All these are useful ways of keeping the public informed. If they are not informed, they will assume that things were not done,” he added.
On improving the bureaucracy, Pong said the new Cabinet could adopt a culture of continuous improvement and pay more attention to the workflow.
Recognising that there has been lot of improvement in departments such as immigration and national registration, he said the government should pay more attention to other departments.
In general, Pong reckoned that the government could only improve with the stronger opposition now.
“Don’t look at it negatively. The BN is still in power, so there will still be continuity in policy and with a little push on BN to work harder, it will be better for everyone,” he said.
Pong said while there should be some changes, they should not be too drastic, as the stock market preferred a degree of continuity and predictability.
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.
KUALA LUMPUR: Fund managers and institutional investors are hoping to see positive changes in the policy-making processes of the new Cabinet, which could be announced as early as Monday.
CMS Dresdner Asset Management Sdn Bhd’s managing director Scott Lim said Prime Minister Datuk Seri Abdullah Ahmad Badawi could appoint new faces to the Cabinet but it was more important to look at the policies implemented by the new line-up.
“Even if they put up new faces, they can behave in the same old way. I am not putting much expectation on the (new) Cabinet line-up. At the end of the day, it is what they do,” he told The Edge in a telephone interview yesterday.
Lim said the government should make some drastic changes to ensure it would come up with policies that serve the interest of the people rather than enriching an elite group.
In the past, the government’s image was battered when it failed to tackle issues such as the granting of approved permits to parties linked to politicians and the Port Klang Free Zone controversy, he added.
“Who runs the government does not matter to me. It is whether the government can make good decisions. It is as simple as that,” Lim said.
Asked what would happen if the new Cabinet line-up failed to win the people’s confidence, he said: “That was what got the government into trouble the last time.”
Lim said it would not be sufficient for Abdullah to just replace one or two ministers as the Cabinet had a collective responsibility.
“Last time, the people were expecting him (Abdullah) to make some changes. He didn’t and the people voted differently,” he said, adding that the people would also be looking at whether Abdullah would make any changes this time.
Lim also recognised that Abdullah would be torn between retaining experienced ministers who may have integrity issues and welcoming inexperienced people who lack track record.
Meanwhile, MIMB Investment Bank Bhd’s head of research Pong Teng Siew expects to see major changes in the Cabinet line-up. He said it could be positive if the new ministers could come up with new ideas.
“It will be good to see some technocrats joining the government. Someone who is not a politician, someone at the lower level of the party but has the competency to oversee a ministry,” he said.
Pong also said the government should consider reviewing its policy of consultation behind closed doors as some people may feel their representatives were not voicing up their concerns.
Citing the example of incoming Selangor Mentri Besar Tan Sri Khalid Ibrahim’s policy of giving progress report to the people, he said it could be useful if the new federal government could give similar feedback.
“All these are useful ways of keeping the public informed. If they are not informed, they will assume that things were not done,” he added.
On improving the bureaucracy, Pong said the new Cabinet could adopt a culture of continuous improvement and pay more attention to the workflow.
Recognising that there has been lot of improvement in departments such as immigration and national registration, he said the government should pay more attention to other departments.
In general, Pong reckoned that the government could only improve with the stronger opposition now.
“Don’t look at it negatively. The BN is still in power, so there will still be continuity in policy and with a little push on BN to work harder, it will be better for everyone,” he said.
Pong said while there should be some changes, they should not be too drastic, as the stock market preferred a degree of continuity and predictability.
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.
CIMB-Principal Equity Growth Fund gets 8 sen distribution
TheEdge
KUALA LUMPUR: CIMB Wealth Advisors Bhd has declared a gross income distribution of eight sen per unit for holders of its CIMB-Principal Equity Growth Fund & Income Fund, formerly SBB Double Growth Fund.
In a statement yesterday, CIMB Wealth said the payout amounted to 6.7% of the fund’s net asset value per unit as at Feb 29, 2008.
“This fund has performed well, giving total returns of 176.16% since it was first launched,” said CIMB Wealth Advisors chief executive officer, Tan Beng Wah.
Launched in May 1991, the fund enables investors to achieve capital appreciation over the medium to long term via all types of investments with the potential for above average growth.
CIMB Wealth said the fund was targeted at investors looking for capital appreciation for the long term, with dividend income being secondary and investors willing to take moderate risk in pursuit of potentially better returns would benefit from the fund.
CIMB Wealth Advisors is a subsidiary of CIMB-Principal Asset Management Bhd, which is jointly owned by CIMB Group and the Principal Financial Group
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.
KUALA LUMPUR: CIMB Wealth Advisors Bhd has declared a gross income distribution of eight sen per unit for holders of its CIMB-Principal Equity Growth Fund & Income Fund, formerly SBB Double Growth Fund.
In a statement yesterday, CIMB Wealth said the payout amounted to 6.7% of the fund’s net asset value per unit as at Feb 29, 2008.
“This fund has performed well, giving total returns of 176.16% since it was first launched,” said CIMB Wealth Advisors chief executive officer, Tan Beng Wah.
Launched in May 1991, the fund enables investors to achieve capital appreciation over the medium to long term via all types of investments with the potential for above average growth.
CIMB Wealth said the fund was targeted at investors looking for capital appreciation for the long term, with dividend income being secondary and investors willing to take moderate risk in pursuit of potentially better returns would benefit from the fund.
CIMB Wealth Advisors is a subsidiary of CIMB-Principal Asset Management Bhd, which is jointly owned by CIMB Group and the Principal Financial Group
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.
Friday, March 14, 2008
Global economy will grow despite US turmoil, says fund manager
TheEdge
KUALA LUMPUR: While the majority’s view is that the global economy will be affected by the economic turmoil in the US, local fund manager Tan Teng Boo of Capital Dynamics says otherwise.
He has firmly advocated for several months now that the world’s economy is still growing despite constant negative news from the world’s largest economy.
Tan, whose firm manages listed-small-cap ICapital.biz Bhd, said the NYSE has only fallen less than 20% from its peak in Oct 2007, while the fall on of many other stock markets with economies that were in far better shape had fallen far worse.
He said the phenomena indicated that the subprime mortgage problem will remain.
“The subprime problem will remain subprime,” he said in his weekly newsletter.
The second reason for Tan’s optimism is that while large financial institutions had been badly hit by the crisis, the central banks have ensured that there was no credit or liquidity crunch.
Tan also said that the US economy was slowing down but believed a recession remained only in the realm of possibility and not a certainty.
His fourth reason why the US economy would not affect global growth is that China would drive the world economy.
“The global stock market might be coupled in terms of their fall but the economies were ‘totally decoupled’ from that of the US economy as the world economy was still enjoying strong economic growth, led by China,” he said.
Tan says that of the long list of worrying factors, the worst would be the rising US inflation.
“This may prevent the Federal Reserve from easing aggressively (inflation), should the need to do so arises again in 2008, the brokerage firm said.
The rising energy prices had been the biggest culprit to inflation in the US and with prices of oil and many food commodities at all time highs.
However, Tan said that they (Capital Dynamics) were more sanguine because it saw the current rise in inflation rate as a cyclical phenomenon rather than a structural worry.
“As described many times before, the US economy is in a ‘cyclical inflation, secular boom,’ phase,” it said.
The US headline inflation rate in the last 10 years or so has been moving up and down in a cyclical fashion amidst a global boom. At the same time, the core rates has also been has also been moving up and down albeit in a more gradual fashion.
While Tan did not see the US inflation rate falling anytime soon, he felt that this up and down trend will continue.
“Given this theory and the fact that the Federal Reserve was more concerned with job creations in a presidential election year than with the temporary rise in inflation, one can expect the NYSE (New York Stock Exchange) to remain underpinned by monetary easing, reasonable valuations and robust economic growth”, he said.
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.
KUALA LUMPUR: While the majority’s view is that the global economy will be affected by the economic turmoil in the US, local fund manager Tan Teng Boo of Capital Dynamics says otherwise.
He has firmly advocated for several months now that the world’s economy is still growing despite constant negative news from the world’s largest economy.
Tan, whose firm manages listed-small-cap ICapital.biz Bhd, said the NYSE has only fallen less than 20% from its peak in Oct 2007, while the fall on of many other stock markets with economies that were in far better shape had fallen far worse.
He said the phenomena indicated that the subprime mortgage problem will remain.
“The subprime problem will remain subprime,” he said in his weekly newsletter.
The second reason for Tan’s optimism is that while large financial institutions had been badly hit by the crisis, the central banks have ensured that there was no credit or liquidity crunch.
Tan also said that the US economy was slowing down but believed a recession remained only in the realm of possibility and not a certainty.
His fourth reason why the US economy would not affect global growth is that China would drive the world economy.
“The global stock market might be coupled in terms of their fall but the economies were ‘totally decoupled’ from that of the US economy as the world economy was still enjoying strong economic growth, led by China,” he said.
Tan says that of the long list of worrying factors, the worst would be the rising US inflation.
“This may prevent the Federal Reserve from easing aggressively (inflation), should the need to do so arises again in 2008, the brokerage firm said.
The rising energy prices had been the biggest culprit to inflation in the US and with prices of oil and many food commodities at all time highs.
However, Tan said that they (Capital Dynamics) were more sanguine because it saw the current rise in inflation rate as a cyclical phenomenon rather than a structural worry.
“As described many times before, the US economy is in a ‘cyclical inflation, secular boom,’ phase,” it said.
The US headline inflation rate in the last 10 years or so has been moving up and down in a cyclical fashion amidst a global boom. At the same time, the core rates has also been has also been moving up and down albeit in a more gradual fashion.
While Tan did not see the US inflation rate falling anytime soon, he felt that this up and down trend will continue.
“Given this theory and the fact that the Federal Reserve was more concerned with job creations in a presidential election year than with the temporary rise in inflation, one can expect the NYSE (New York Stock Exchange) to remain underpinned by monetary easing, reasonable valuations and robust economic growth”, he said.
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.
HLG Unit Trust teams up with Citibank, Permal on fixed income feeder fund
TheEdge
KUALA LUMPUR: HLG Unit Trust Bhd has entered into its first partnership with two US-based global financial services groups, Citibank and Permal Investment Management Services Ltd, with the launch of a fixed income feeder fund, HLG Fixed Income Holdings Fund.
Amid volatile equities markets globally, the fund aimed to provide investors with an alternative investment option that strives for consistent above-market returns in any market conditions, while maintaining a lower risk profile than traditional investments, said Citibank Bhd’s head of retail banking, Paul Hodes, at the launch of the feeder fund here yesterday.
The fund will invest at least 95% of its net asset value into the underlying fund, Permal Fixed Income Holdings NV (PFIH), which focuses on employing fixed income long, fixed income trading, macro, relative value arbitrage and event driven strategies.
From left: Citibank Bhd CEO Sanjeev Nanavati, Citibank head of retail banking Paul Hodes, HLG Asset Management CEO Richard Lin, Permal Singapore Pte Ltd & Permal Hong Kong Ltd MD Bo Kratz and Citibank country business manager Michellina Triwardhany at the launching of the Hong Leong Fixed Income Holdings Fund in KL yesterday.
One of the world’s largest alternative asset management groups and with over US$37 billion of assets under management, Permal claims to set the standards for hedge funds, offering an array of portfolios invested across a wide range of strategies, regions, and risk/return objectives.
Under the tripartite collaboration, sales distribution will be handled by both Citibank and HLG Unit Trust’s agency force, while Permal manages the underlying fund. Hodes said the underlying fund adopted a multi-concept approach, which strives to assemble the optimal mix of managers and strategies.
“As investors seek out products that respond to the changing dynamics in investment, we are proud to launch such a product to the investing public.
“HLG Fixed Income Holdings Fund is specially developed for the rollout of this new partnership and exclusive distribution rights have been awarded to Citibank,” said HLG Asset Management Sdn Bhd’s executive director and chief executive officer, Richard Lin.
According to figures provided by HLG Unit Trust, Permal’s fixed income fund managed returns of about 10% over the past five years, with a relatively low risk of 3.4 in terms of standard deviation.
The current approved size for the newly launched fund is 300 million units, while the minimum initial investment is RM100,000. Each unit is priced at 50 sen during the initial offer period between March 12 and April 1, 2008.
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.
Thursday, March 6, 2008
CIMB-Principal to focus on O&G, plantations, construction
TheEdge
KUALA LUMPUR: CIMB-Principal Asset Management Bhd will put their investors money mainly in local oil and gas (O&G) companies, plantation and construction stocks.
The asset management company also plans to launch 20 unit trust schemes this year, an exercise that is expected to increase its fund size by more than a third to some RM26 billion.
Speaking to reporters yesterday at the launch of the CIMB Islamic DALI Equity Theme Fund, the firm’s third new offering this year, CIMB-Principal chief executive Datuk Noripah Kamso said Malaysia’s O&G sector would be driven by global energy demand, while soaring palm oil prices, and construction jobs under the Ninth Malaysian Plan would spur the plantation and construction industries respectively.
“Our remaining 17 funds will be largely Islamic because we are targeting the Middle East market,” Noripah said.
Of the 20 schemes to be unveiled this year, seven products will be launched by the firm’s Indonesian unit. Last year, CIMB-Principal Asset Management launched 11 new offerings to reach a combined fund size of approximately RM19 billion.
Meanwhile, the CIMB Islamic DALI Equity Theme Fund, expected to yield up to 12% in annual returns, will, initially, capitalise on the growth of local O&G, plantation and construction stocks, said Noripah.
At 25 sen apiece, the open-ended 600 million unit fund translates into a RM150 million scheme that will invest 98% of its net asset value in Islamic-compliant shares on the local exchange.
“Targeted returns for this fund will range from 8% to 12 % per annum. Malaysia is resilient in the global backdrop,” she said.
The unit trust is also expected to invest in other growth sectors including water, automobile and retail, according to its prospectus dated Feb 18.
Meanwhile, according to the Lipper FundMarket Insight Reports on Malaysian unit trust funds, Islamic schemes here fell 2.83% in January but still outperformed the broader unit trust market’s 3.99% drop during the month.
The broader market’s dip came because equity funds had to bear the brunt of the downturn in global bourses to finish at the bottom of the scoreboard with a 6.47% loss, dragged down by losses in funds investing overseas, notably greater China, and real estate plays.
In 2007, Islamic unit trusts rose 1.95% in December to end the year with a 22.84% gain, surpassing the overall unit trust market’s 1.42% and 21.33% advance respectively, as soaring commodity prices bolstered the Kuala Lumpur Composite Index.
CIMB-Principal, formerly known as Commerce Trust Berhad, is jointly-owned by CIMB Group and US-based Principal Financial Group on a 60:40 equity basis.
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.
KUALA LUMPUR: CIMB-Principal Asset Management Bhd will put their investors money mainly in local oil and gas (O&G) companies, plantation and construction stocks.
The asset management company also plans to launch 20 unit trust schemes this year, an exercise that is expected to increase its fund size by more than a third to some RM26 billion.
Speaking to reporters yesterday at the launch of the CIMB Islamic DALI Equity Theme Fund, the firm’s third new offering this year, CIMB-Principal chief executive Datuk Noripah Kamso said Malaysia’s O&G sector would be driven by global energy demand, while soaring palm oil prices, and construction jobs under the Ninth Malaysian Plan would spur the plantation and construction industries respectively.
“Our remaining 17 funds will be largely Islamic because we are targeting the Middle East market,” Noripah said.
Of the 20 schemes to be unveiled this year, seven products will be launched by the firm’s Indonesian unit. Last year, CIMB-Principal Asset Management launched 11 new offerings to reach a combined fund size of approximately RM19 billion.
Meanwhile, the CIMB Islamic DALI Equity Theme Fund, expected to yield up to 12% in annual returns, will, initially, capitalise on the growth of local O&G, plantation and construction stocks, said Noripah.
At 25 sen apiece, the open-ended 600 million unit fund translates into a RM150 million scheme that will invest 98% of its net asset value in Islamic-compliant shares on the local exchange.
“Targeted returns for this fund will range from 8% to 12 % per annum. Malaysia is resilient in the global backdrop,” she said.
The unit trust is also expected to invest in other growth sectors including water, automobile and retail, according to its prospectus dated Feb 18.
Meanwhile, according to the Lipper FundMarket Insight Reports on Malaysian unit trust funds, Islamic schemes here fell 2.83% in January but still outperformed the broader unit trust market’s 3.99% drop during the month.
The broader market’s dip came because equity funds had to bear the brunt of the downturn in global bourses to finish at the bottom of the scoreboard with a 6.47% loss, dragged down by losses in funds investing overseas, notably greater China, and real estate plays.
In 2007, Islamic unit trusts rose 1.95% in December to end the year with a 22.84% gain, surpassing the overall unit trust market’s 1.42% and 21.33% advance respectively, as soaring commodity prices bolstered the Kuala Lumpur Composite Index.
CIMB-Principal, formerly known as Commerce Trust Berhad, is jointly-owned by CIMB Group and US-based Principal Financial Group on a 60:40 equity basis.
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.
OSK-UOB to ease up on equity products this year
TheEdge
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd is trimming its bets on equities this year but will boost exposure in other asset classes such as bonds to safeguard its portfolio of more than 30 funds amid a volatile global investment landscape.
While still optimistic on the Malaysian capital markets, the firm is also planning to embark on more overseas-oriented schemes this year to widen its investment scope, and introduce a new Islamic unit trust fund.
“Our direction is more on conservative funds that give investors lower volatility,” OSK-UOB executive director and chief executive officer Ho Seng Yee told reporters here yesterday after the launch of the “OSK-UOB Malaysia Dividend Fund.”
With the latest fund, OSK-UOB has 34 offerings, 47% or 16 of which are equity products, its website shows.
From left: UOB-OSK Asset Management Sdn Bhd executive director/CEO Lim Suet Ling, chief investment officer Jason Chong and OSK-UOB Unit Trust Management Bhd executive director and chief executive officer Ho Seng Yee at the launch of the OSK-UOB Malaysia Dividend Fund in Kuala Lumpur yesterday.
Global anticipation of the US sinking into a recession is triggering concerns that the world’s largest economy will import fewer products from Asian countries including Malaysia.“We are positive on Malaysian equities. Malaysia can be viewed as a safe haven by investors during times of uncertainties. Both the economy and stock market are somewhat insulated from global shocks,” said Ho, who is a council member of the Federation of Malaysian Unit Trust Managers, which represents 69 unit trust players.
“Reports have shown that 86% of Malaysia’s gross domestic product (GDP) is derived from domestic demand, more than 90% of 2008 projected GDP growth of 6%-6.5% is expected to come from domestic demand growth and 77% of stocks by market capitalisation on Bursa Malaysia comprise domestic oriented companies,” Ho said.
Lipper head of research for Asia (excluding Japan), Kenneth Koh, said: “Malaysia is also being increasingly touted for its defensive qualities, although if January’s wild swings are any indication, increased stock market volatility will be the norm going forward.”
Meanwhile, the OSK-UOB Malaysia Dividend Fund, will invest at least 70% of its net asset value (NAV) in growth, and high-dividend yielding stocks on the local exchange to achieve expected annual returns of up to 14%, said Ho.
The 14% yearly gains were computed based on a forecast 10% capital gain, and 4% dividend yield via a relatively defensive portfolio including shares of gaming, telecommunication, and tobacco companies.
At 25 sen apiece, the open-ended 1.2 billion unit trust fund translates into a RM300 million scheme which will also park up to 30% of investors’ money in other instruments such as bonds, and the money market.
OSK-UOB posted a net profit of RM5.4 million on an operating revenue of RM71.2 million in the six months to June 30, 2007 versus RM5.6 million net profit and RM66.2 million revenue in the full year ended Dec 31, 2006, according to the Malaysia Dividend Fund prospectus.
OSK-UOB, 70%-30% owned by OSK Investment Bank Bhd and United Overseas Bank (Malaysia) Bhd, plans to launch some 10 new unit trust funds this year to expand its fund size by about 25% to RM5 billion from about RM4 billion last year.
According to the Securities Commission, as at last Jan 31, Malaysia had 531 approved unit trust funds with a combined NAV of RM170.02 billion which accounted for 16% of Bursa Malaysia’s RM1,057.33 billion market capitalisation.
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.
Maybank’s new fund focuses on HK and Singapore
TheStar
KUALA LUMPUR: Risk-averse investors now have the opportunity to cash in on the robust growth outlook of Asian economies, which are expected to continue to outperform the US economy over the next four years.
Malayan Banking Bhd (Maybank) yesterday unveiled its latest structured product called the Precious Asian fund, a capital-guaranteed investment-linked plan it claimed to be the first one in the market that focused on Hong Kong and Singapore.
“This investment-linked plan is suitable for investors who believe that the Hong Kong and Singapore stock market will outperform the US (market) over the next few years,'' senior executive vice-president and head of consumer banking, Spencer Lee, told a media briefing yesterday.
The new RM350mil fund joins Maybank's portfolio of 13 conventional funds and four takaful funds totalling some RM3.3bil launched to date.
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.
KUALA LUMPUR: Risk-averse investors now have the opportunity to cash in on the robust growth outlook of Asian economies, which are expected to continue to outperform the US economy over the next four years.
Malayan Banking Bhd (Maybank) yesterday unveiled its latest structured product called the Precious Asian fund, a capital-guaranteed investment-linked plan it claimed to be the first one in the market that focused on Hong Kong and Singapore.
“This investment-linked plan is suitable for investors who believe that the Hong Kong and Singapore stock market will outperform the US (market) over the next few years,'' senior executive vice-president and head of consumer banking, Spencer Lee, told a media briefing yesterday.
The new RM350mil fund joins Maybank's portfolio of 13 conventional funds and four takaful funds totalling some RM3.3bil launched to date.
From left: Mayban Fortis Holdings acting CEO Hugo Philip Van Vledder, Spencer Lee and Mayban Fortis CFO Hans De Cuyper.
So far, the Precious Asian fund has attracted some RM70mil worth of investment, and will remain on sale till March 27.
The four-year term plan is expected to generate “good returns” from investments linked to a basket of two major Asian equity indices - the Hang Seng Index and the MSCI Singapore Cash Index - against the Standard & Poor's 500 Index.
Basically, the two Asian indices need to outperform the US benchmark during the four-year period for investors to reap the projected returns.
“At the end of the investment tenure, Precious Asian is expected to provide a potential return of 27.2%,'' Maybank said in a statement.
The latest fund is available at a minimum investment of RM15,000 that comes with financial protection feature underwritten by Etiqa Insurance Bhd.
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.
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