KUALA LUMPUR (Oct 10): UOB Asset Management (Malaysia) Bhd (UOBAM Malaysia) expects global markets to maintain a positive growth trajectory in the medium term, amid expectations that the US Federal Reserve will continue on its path towards gradual interest rate hikes and the European Central Bank will complete its asset purchase programme by 2018.

However, UOBAM Malaysia chief executive officer Lim Suet Ling noted that investors are concerned about the impact resulting from these monetary policy decisions, and expect volatility to rise.

"Lingering geopolitical risks and US protectionist trade policies are adding further uncertainty to financial markets. We believe it is prudent to be prepared to implement a more cautious stance should market risks increase," she told reporters at a news conference today in conjunction with the official launch of the United Global Income Focus Fund (UGIFF).

The UGIFF, which has been in market since Oct 2, is a multi-asset all-weather fund that seeks to offer investors the potential for regular income and capital appreciation by investing in a broad spectrum of global asset classes that outperform in different economic environments — growth, weak growth, stagflation and inflation.

It aims to provide investors with returns of between 4% and 5% per annum, distributed quarterly.

Lim said the launch of UGIFF is timely given investors' expectation of a rise in volatility and global market uncertainty.

"In a rapidly changing market environment, investors could benefit from increasing flexibility to shift their asset allocation and risk exposures to meet their investment objectives.

"The UGIFF has the ability to reallocate among a diverse set of traditional and alternative asset classes to gain the best income and capital growth opportunity for investors. It aims to deliver regular returns in a wide range of market environments, including a rising rate, adverse credit or equity sell-off environment," she said.

The UGIFF is sub-managed by Wellington Management Singapore Pte Ltd. The fund will invest a minimum of 90% of its net asset value in the target fund, which is the United Income Focus Trust managed by UOB Asset Management Ltd in Singapore.