TheStar
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd expects its latest product, the OSK-UOB Capital Protected Equity Fund, to yield potential annual returns of 6% to 8%.
Chief investment officer Jason Chong said the three-year closed-end fund would provide capital appreciation over the medium term and refund the initial investment on maturity.
“We are in the midst of a slowdown, and in this period of uncertainty, sectors such as airline and petrochemical will do well. Investing in general offers is also considered a safe bet based on the absolute performance of the market,” he told reporters at the launch yesterday.
The fund’s principal strategy is to invest 85% to 100% of the capital raised in a three-year zero coupon negotiable instrument of deposit to protect the fund’s capital. The remainder will be invested in equities and/or derivatives of companies with strong underlying growth potential.
“We will adopt an absolute performance strategy. For example, once the stock goes up by 15% to 20%, we will sell,” Chong said.
The fund has an approved size of 200 million units at an initial price of RM1 per unit.
The minimum initial investment is RM5,000 and the subsequent minimum top-up is RM1,000.
Asked on OSK’s view of the world markets, Chong said that for OSK’s global asset allocation, it was currently underweight on equities in general. In terms of country allocation, it is neutral on the US, underweight on Europe and overweight on Asian markets.
He also said fund managers expected the overnight policy rate to be raised by 25 to 50 basis points by the end of this year.
“Currently, the Asian market ex-Japan is trading at a price-earnings ratio of 12.4 times. When the market valuation is cheap, there is a lot of opportunity. That’s why we think it’s a good time to launch this fund,” Chong added.
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