HLG Unit Trust calls for review of foreign limit

  • Business
  • Thursday, 20 Apr 2006

KUALA LUMPUR: HLG Unit Trust Bhd hopes for a review of the current limit on investment in overseas funds by unit trust companies, as the company is close to reaching the 30% limit. 

HLG Asset Management Sdn Bhd executive director and chief executive officer Richard Lin said that HLG Unit Trust's was not an isolated case as other companies too were approaching their limits. 

“This shows a strong public desire to invest abroad to diversify their portfolio investment. It not only gives them opportunities to invest in other countries and gain exposure, it also enables them to better manage their risks. 

“I hope Bank Negara and the Securities Commission (SC) would consider reviewing the 30% limit,” Lin said after launching the HLG Global Healthcare Fund yesterday. 

The HLG Global Healthcare is a feeder fund that invests a minimum 95% of its net asset value in the United Global Healthcare Fund and a maximum 5% in liquid assets. The latter is a product of Singapore's UOB Asset Management Ltd. 

From left, at the launch of the fund in Kuala Lumpur on Wednesday are: UOB Asset Management Ltd managing director and chief investment officer Thio Boon Kiat, Wellington International Management Company Pte Ltd managing director Siow Chai Sheng, Hong Leong Credit Bhd president Raymond Choong and HLG Asset Management Sdn Bhd executive director and chief executive officer Richard Lin.

The new equity growth fund aims to achieve long-term capital growth by investing in securities issued by companies involved principally in the development, production or distribution of products, equipment and/or services related to healthcare worldwide. 

Siow Chai Sheng, the managing director of Wellington International Management Comp Pte Ltd, the fund's investment adviser, estimates the healthcare industry has more than 600 companies in 20 countries, with a total market capitalisation of US$3.2 trillion. 

Since the fund went on sale two days ago, about 75% of the 400 million units have been subscribed. HLG Unit Trust received approval from the SC yesterday to increase the fund size by another 400 million and Lin expects all the units to be taken up within a week.  

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