KUALA LUMPUR: RHB Unit Trust Management Bhd is targeting a total fund size of over RM2bil by the year-end with the launch of at least four new funds.
Chief executive officer Michael Tan Lib Chau said its total funds currently stood at RM1.35bil.
“We hope to launch four new funds by the end of the year, depending on market demand,” he said yesterday after the launch of RHB Unit Trust’s first capital guaranteed fund.
The Asia Pacific Select (I) Capital Guaranteed Fund is RHB Unit Trust's second fund to be launched this year. To date, RHB Unit Trust has close to 20 funds.
Tan said the new fund would invest at least 85% in zero coupon negotiable instruments of deposit and the remainder in Capture The Peak (CTP) options, which are linked to a basket of 10 Asia Pacific stocks in infrastructure and energy sectors.
He said the performance of the basket of stocks would be monitored daily and the peak or best performance monthly would be locked in to give an aggregate of the highest monthly returns over the three-year tenure.
Tan said it was estimated that investors would reap a minimum return of 3.18% and a maximum return of 17.42% per year.
These figures are based on five years of back testing on annual returns.
Back testing is the process of applying a trading strategy to historical data to see how accurately the strategy would have predicted actual results.
The guarantor for the fund is United Overseas Bank (M) Bhd while the trustee is UOB Trustee (M) Bhd. The fund will be managed by UOB-OSK Asset Management Sdn Bhd.
UOB-OSK Asset Management executive director and chief executive officer Lim Suet Ling said infrastructure stocks were chosen for their potential growth.
“We expect some US$3tril to be spent in this sector in the next 10 years due to urbanisation in China, India and other countries in this region,” she said.
The stocks include China Mobile Ltd, Beijing Capital International Airport Co Ltd, Petrochina Co Ltd-H, BHP Billiton Ltd and Samsung Heavy Industries Co Ltd.
On the potential of growth in the energy sector, Tan said despite the recent retreat in oil prices, there was still an imbalance between discovery of new fields and the depletion of existing fields. “We believe oil prices are undergoing short-term corrections before continuing with their bull run,” he said.