TheStar
KUALA LUMPUR: TA Investment Management Bhd (TAIM) expects its new unit trust fund TA Dana Fokus to give investors a yearly return of 12%.
The product is a syariah-compliant fund that seeks to tap into the Malaysian stock market with a concentrated equities portfolio.
Chief investment officer Choo Swee Kee said he expected the equities market to recover in the fourth quarter, which would enable the company to meet the target for this fund after a year.
“Right now, the market sentiment is quite negative but the downturn of the market has more or less tapered off.
“We will see some signs of recovery in the fourth quarter and the market should pick up in the first half of 2009,” he said after the fund launch yesterday.
Choo said the US subprime crisis, which had been ongoing for more than a year, was expected to taper off soon.
While the US economy was likely to slow down and go into a “shallow recession”, he said it (the US economy) should rebound in the fourth quarter and lead to a recovery in the local market.
Choo said the new funds's concentrated portfolio would provide customers with the opportunity to accumulate good value stocks and take advantage of today's market conditions.
The immediate strategy for the fund, he said, would be to focus on blue-chip stocks with share prices that had fallen below their fair value but had strong fundamentals and good long-term prospects.
“We expect these stocks to lead in the market recovery.
“Moving on to the last quarter of 2008, we will be looking to split the fund's exposure into the oil and gas sector as the industry has been under-invested in the past decade and its profits are expected to remain healthy, even if oil prices should weaken,” he said.
Choo said new fund's portfolio was likely to consist of 28 local syariah-compliant stocks or less.
The new product has an approved size of 150 million units. The initial offer price is 50 sen per unit for 21 days from the launch date with a minimum investment of RM1,000.
Chief executive officer Wong Mien said TA Investment was targeting sales of RM30mil to RM40mil for this fund. At present, the company manages funds totalling RM750mil.
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