Wednesday, March 19, 2008

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.

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