PETALING JAYA: Leading global financial services group, The Principal Financial Group remains optimistic on the long term growth potential of the Malaysian economy and maintains that this would be reflected in the local equity market.
Its president Larry D. Zimpleman said: "We are very optimistic on the long term potential of the local economy, and hence the equity market. We expect to see a 10%-12% annual growth for the local bourse."
Speaking after the launch of CIMB-Principal Asset Management’s first unit trust investment corner at CIMB Bank on Thursday, Zimpleman said the financial services group was also optimistic on the global markets.
"The Federal Reserve is likely to cut the Fed fund rate by another 25 basis points when they meet again in about 3 weeks. It will definitely have a positive impact on the markets here. But in the long-term , it is the economy that will determine (the performance of the equity markets)," he said.
CIMB-Principal is a joint-venture between CIMB Group and Fortune 500 company The Principal Financial Group.
Asked on plans to buy other asset funds in Malaysia, Zimpleman said: "We have ongoing conversations here with our partner CIMB but there's no active discussion at this point."
He also said that the company believed its best opportunity to grow its business in Malaysia was to develop it by itself and therefore, was not considering any acquisitions at the moment.
CIMB-Principal's investment corner is a new branch concept designed to dedicate space and visibility to its range of investment products.
The concept, according to CIMB Bank Bhd head, consumer sales & distribution Sulaiman Tahir will initially be launched at five pilot CIMB branches, which includes its branches at The Curve, Taman Tun Dr. Ismail and Pusat Bandar Damansara. CIMB : [Stock Watch] [News] CIMB-OA : [Stock Watch] CIMB-OR : [Stock Watch]