RHB Unit Trust sees higher sales

  • Business
  • Thursday, 08 Jan 2004

RHB Unit Trust Management Bhd is targeting total sales of RM650mil for the financial year ending June 30, up from RM500mil last year. 

Not only is the company aiming for higher sales, but also a larger total fund size – RM2bil by the end of the year.  

Its chief executive officer Michael Tan Lib Chau said total funds under management last year was RM1.3bil, and he was optimistic the target could be realised by the year-end. 

RHB Bank's vast network of branches, numbering 216 nationwide, play a prominent role in the sale and distribution of unit trusts. “We have been selling quite extensively via the bank's branches and through our third party distributors or institutional unit trust agents (IUTAs),'' Tan said during an interview with StarBiz. 

RHB Unit Trust currently has tie-ups with IUTAs HSBC Bank, Standard Chartered Bank and Southern Bank, and is looking to tie up with more third-party distributors in the near future. 

Close to 85% of the company's unit trust sales comes from RHB Bank and third party distributors, and about 15% from its agency force. 

According to Tan, the company would be opening another two more branch offices, one each in Johor Baru and Kuching, by the first quarter of 2004. These will be its southern and Sarawak regional offices, respectively, he added. 

RHB Unit Trust has two regional offices at present, in Penang (northern region) and in Kota Kinabalu (Sabah region).  

It currently distributes seven funds and plans to launch two new funds: an equity Islamic-based fund by the first quarter of this year, and a specialty fund in the second quarter of 2004. 

It expects sales of unit trust funds this year to be equally balanced between equity and bond funds. Last year, the bulk of sales were derived from bond funds because of the weak equity market. The trend began to change in the last few months of 2003 when the equity market took a turn for the better. 

The RHB Islamic Bond Fund (Syariah-based) and the RHB Bond Fund were the best selling funds in 2003. Both are sold without any front-end load.  

 Stock Watch On RHB

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