It is introducing new products to meet the target by 2011
KUALA LUMPUR: HLG Asset Management Sdn Bhd aims to increase its total fund size to RM6 billion by 2011 from the current RM2.35bil.
HLG Asset Management Sdn Bhd’s executive director and chief executive officer, Richard Lin, said the company was confident of achieving its target with the introduction of new funds.
“The company has more new products in the pipeline. But it needs to review the regional markets first before deciding to launch the products,” he told reporters after the launch of HLG Shariah Inflation Select Fund yesterday.
HLG Unit Trust Bhd executive director/acting CEO Teo Chang Seng left) and HLG Asset Management Sdn Bhd executive director Richard Lin at the launch on Wednesday. - Starpic by Shaari Che Mat
Lin said he expected the new fund to perform well given the current inflationary pressures as it is a structured fund that is benchmarked against the performance of companies, both locally and abroad, that would benefit from an environment of rising inflation.
“The fund’s potential returns are benchmarked on three baskets of reference stocks in the agriculture, consumer staples and oil & mining sectors,” he said.
While global inflation rates are expected to ease, Lin does not expect them to get back to levels they were at one to two years ago.
“The surge in inflation is due to oil and commodity prices ... (but) if you look at the fundamentals of demand, we would not expect nature to produce more oil or minerals,” he said. “We are also not going to see a sharp correction as far as demand for food (is concerned).”
Lin reckoned that the robust economy of China will sustain the demand for food and oil and “that will underpin to a large extent inflationary pressures.”
“We are not saying that inflation is going to go all the way up. It has peaked but it will still be going to be at a high level and (that is) something we have to contend with,” Lin added.
The response to the new fund has been promising since it was launched two days ago, he said, adding that the fund has been seeing “double digit inflow of sales.”
Minimum initial investment for the fund is RM1,000 while the maximum amount is RM20mil.
The fund has a total approved fund size of 600 million units priced at 50 sen per unit during the offer period from Sept 22 until Nov 5.
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