HSBC adds 2 third party unit trust funds

  • Business
  • Saturday, 30 Aug 2003

HSBC Bank Malaysia has added two third party unit trust funds to its current stable of 22 distributed funds from 10 unit trust management companies. 

According to HSBC general manager (personal financial services) U Chen Hock, the bank applied stringent selection criteria to third party unit trust products. 

The two balanced funds, from CMS Trust Management Bhd and HLG Unit Trust Bhd, have investment mandates with a maximum 60% exposure in the equities market, the bank said in a statement. 

U Chen Hock (middle), Tye Su Leng and CMS Trust Management regional manager (central region) Peter Looi at the announcement.

“Since the beginning of the third quarter, investors have generally responded positively to the equity market's strong performance, resulting in the improvement in sales of equity funds,” the statement quoted CMS Trust CEO S. Kamaravelloo Pillai as saying. 

On the bond market, HLG Unit Trust CEO Tye Su Leng said: “We believe the recent correction has already priced in growth and hence, should not deteriorate any further after being massively oversold. 

“We remind investors to keep sight of their investment objectives by taking a longer term view of the situation and not get distracted by short term noises.” 

Tye explained that the Malaysian bond market adjustment was an imitation of the correction in US Treasuries in mid-July. “The sudden hike in bond yields caught many unawares and this led to panic selling, which in our opinion, was an over-reaction to a glimpse of recovery. 

“The market has not digested the fact that sustained recovery requires a gestation period filled with conducive economic policies. This will include easy monetary policies until we gain a convincing foothold on the growth cycle. 

“Fundamentally, the economic situation remains unchanged and liquidity healthy,” she said at the press briefing on Thursday.  

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