Thursday, January 8, 2009

OSK-UOB plans 7 more funds

TheStar

KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd, which unveiled its first fund of the year yesterday, is looking to launch seven more funds this year and is aiming for an 18% to 20% expansion in its total fund size.

Chief executive officer Ho Seng Yee said OSK-UOB hoped to launch more capital-protected funds in the first half of this year and gradually introduce equity-linked funds in the second half on expectations financial markets would rebound in the latter part of the year.

With a fund size of RM3.1bil under management now, Ho said the company hoped to grow its fund size to between RM3.6bil and RM3.7bil by year-end.

Its fund size shrank to RM3bil by the end of last year from RM3.9bil in early 2008.

“We are quite happy if we can achieve 18% to 20% growth in fund size by year-end,” Ho said after launching the OSK-UOB Capital Protected KLCI Advantage Fund, its first fund this year.

Although economists have estimated the country’s gross domestic product (GDP) growth at around 1% to 3%, Ho said he believed the financial markets would gradually recover in the second half or by the fourth quarter when the effects of worldwide stimulus packages kicked in.

“We hope to launch more capital-preserved and easier to understand funds, such as this one,” he said, referring to the OSK-UOB Capital Protected KLCI Advantage Fund.

“Investors who are familiar with KL Composite Index (KLCI) will find this (fund) close to their hearts and gradually regain their confidence.”

The OSK-UOB Capital Protected KLCI Advantage Fund is a two-year closed-end fund linked to the KLCI that offers investors protection of their capital.

“We expect the KLCI to stay within 850 to 950 points,” Ho said.

The fund’s principal strategy is to invest 90% to 97% of the capital raised in primarily a two-year zero coupon negotiable deposit instrument, and up to 10% in over-the-counter options issued on the KLCI, he said.

The options might yield a potential maximum return of 17% per annum, Ho said.

“Up to next year, we expect to see KLCI intermittently trending lethargically up and down. Hence this fund will offer investors opportunity to capitalise on the interplay of the upside potential and downside risks of the KLCI,” he said.

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