KUALA LUMPUR (June 4): Maybank Asset management Sdn Bhd (MAM Malaysia) has launched its wholesale feeder MAMG Gold Fund (the Fund) today, which aims to maximise investment returns by investing in the Pictet CH Precious Metals Fund- Physical Gold (Target Fund), a Switzerland- domiciled fund of Pictet Asset Management SA.
In a statement today, Maybank said the Target Fund's investment objective is to offer investors' exposure to movement in physical gold prices as the fund tracks the daily movement in gold prices daily.
“To meet its investment objective, the Fund will invest a minimum of 90% of the Fund's net asset value (NAV) in the target fund and a maximum of 10% of the fund's NAV will be invested in liquid assets," it said.
It added the Fund provides key benefits to investors which it offers the potential returns from the investment into gold, with very low tracking error and the Fund tracks closely to the daily movement in gold price based on the London Fixing , 3pm GMT.
"Moreover, the Fund is 100% invested into physical gold, not paper gold or derivatives and does not have counterparty nor credit risks associated with paper or synthetic gold investments which may affect the performance of the Fund.
"Last but not least, the Fund is less correlated to key asset classes such as bonds and equities, thus enhancing the risk-return profile of investors," Maybank said.
MAM Malaysia chief executive officer Ahmad Najib Nazlan said there was increasing demand for gold as it is a good hedge against market uncertainties.
“Safe haven investment demand created by the pandemic conditions as well as low interest rates and rising money is still conducive for gold purchase.
“Geopolitical issues, a weaker dollar, renewed trade tensions and the upcoming US presidential election may support the demand for it too," Najib said.
Najib added central banks which proved major support to prices in recent years have slowed gold purchases with the reach of an optimal share of reserves (e.g Russia), hence further diversification away from the largest developed currencies and with bond yields at a near record low may lend further support to gold.
“Thus, in a low and near zero interest environment, gold is becoming more and more attractive as an alternative investment because it has no yield, making it a necessary component to an investment portfolio. Our MAMG Gold Fund will be able to offer investors diversification in their investment portfolios," Najib said.
Najib said MAM Malaysia and Citibank Bhd (Citi) entered into a strategic distribution partnership since January this year.
He said this partnership allows MAM Malaysia Funds to be offered to Citi clients and the new MAMG Gold Fund is available exclusively for Citi clients.
On the partnership, Najib said MAM Malaysia also has plans to introduce other new innovative investment solutions such as Environmental, Social and Governance (ESG) fund to our current offerings.
Meanwhile, Citi Malaysia head of wealth of management product Jeremy Ho said the partnership is timely in the midst of market volatility and challenges of global growth, where long-term strategic and sustainable investing is pivotal to cushion against these challenges.
MAM Malaysia said as part of the strategic distribution partnership, Citi is also distributing MAMG Dynamic High-Income Fund which is the Wholesale Fund that is suitable for sophisticated investors, one of MAM Malaysia's leading funds.
“The fund invests in the Blackrock Global Funds Dynamic High Income Fund and aims to deliver an income of 5%-7% p.a in the United States Dollar term," it said.
At 10.32am, Maybank rose 1.50% or 12 sen to RM8.10, valuing it at RM91.06 billion.
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