RHB Unit Trust Management Bhd plans to invest up to 70% of the net asset value of its latest fund in Asian equities, ex-Japan.
The launch of the RM250mil RHB Diva Fund yesterday adds the company to the growing list of local unit trust firms that are starting to invest a portion of their funds in global markets after Bank Negara raised the bar on how much they can invest in foreign assets.
Last month, Pacific Mutual Fund Bhd and MAAKL Mutual Bhd kicked off their funds, with plans to respectively invest 30% and up to 100% of the net asset value (NAV) of their funds in Asian equities.
CMS Trust Management Bhd said on Tuesday it would invest up to 10% of the NAV of CMS Premier Fund and CMS Balanced Fund in oversees markets.
Come Monday, CIMB-Principal Asset Management will launch its Global Titan Fund which will have a portion its NAV invested in non-Asian equities markets, making it the first to move into the US, European and Japanese equities market.
Other unit trust companies have similarly indicated interest to invest their funds abroad and some are awaiting approval from the authorities to launch their funds.
Soon, the consumer would be spoilt for choice but some critical components they should look into before buying any funds is who the fund managers are, what are the potential capital gains and income distribution, and the currency fluctuation issue.
Competition notwithstanding, RHB Unit Trust chief executive officer Michael Tan Lib Chau remains bullish over the take-up rate for the RHB Diva Fund.
To Tan, it “would be high” for he believes Malaysians have been waiting for an opportunity to invest abroad.
The company has appointed UOB-OSK Asset Management Sdn Bhd as asset managers to invest the monies in the equities markets.
The open-ended RHB Diva Fund has a size of 500 million units and is being offered at 50 sen per unit. This will raise RM250mil of which RM175mil would be invested in equities in markets such as China/Hong Kong, South Korea, Taiwan, Thailand, the Philippines, Singapore and even Indonesia.
In terms of asset allocation, 70%–98% would be in equities and equities-related securities and the balance in fixed income securities/cash.
Tan anticipates capital gains of about 10%–15% a year and yields of up to 5% per annum.
“We will focus on high income and high-yield stocks,” he said. “Going into Asia is part of our strategy to diversify and optimise returns.”
RHB Unit Trust has 15 funds with a total fund size of RM1.5bil as at end June.
The RHB Diva Fund coupled with two or three more new funds planned, including Islamic offerings, would take the fund size to RM2bil by year's end, Tan said.
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