OCBC Bank (M) Bhd, a leading third-party distributor of unit trusts, expects its funds to hit the RM1bil sales mark by the end of the year.
Its director and chief executive officer Datuk Albert Yeoh said the bank had already sold some RM700mil worth of funds and was on track of crossing the RM1bil figure. Last year, its funds sales amounted to about RM200mil.
We are confident of selling RM1bil worth of unit trusts this year partly because the bank has well-trained and experienced sales staff and they are taught to provide good after-sales service. They understand the risk appetite and profile of consumers and are able to advise them on the appropriate funds that suit their objectives.
Additionally, we also have good strategic partners (unit trust companies) who are willing to work with us to supply the right funds/packages for our customers, Yeoh told a press conference in conjunction with OCBC's 888 contest prize presentation ceremony in Kuala Lumpur yesterday.
Prizes amounting to RM1.05mil were given away to 10 winners at the ceremony.
OCBC Bank now distributes 50 different funds and has over 10,000 customer accounts for unit trusts.
On Aug 11, the bank entered into a special arrangement to become the exclusive distributor of Pacific Mutual Fund Bhd's two funds (Income and Balance Funds). Within two weeks, the bank sold over RM50mil of the said funds.
On the bank's view of the unit trust industry, senior vice-president and head of consumer financial services Cheong Chin Kuan said: The outlook is good in view of the good performance of the equity market. The KLSE Composite Index is almost touching 740 points and the market is flush with liquidity and investor sentiment is good arising from some good corporate financial results.
The market has the potential to cross over 800 points in the coming months and judging from this scenario coupled with low interest rates, the prospects look bright for the unit trust industry.