RHB Asset Management Sdn Bhd and OCBC Bank (M) Bhd have launched a series of single ETF-based beta funds, the first of its kind in the country.
Aimed at high net worth investors, the four funds – RHB-OSK US Index Beta Fund, the RHB-OSK Japan Index Fund and the RHB-OSK Emerging Asia Index Beta Fund – aim to mirror the performance of a specific underlying market index and seek to closely replicate their respective benchmarks.
They focus on four major regions through the following indices: S&P 500 (USA), Euro Stoxx (Europe), Nikkei 225 (Japan) and MSCI EM Asia (eight Asian countries).
Each fund is based upon an underlying exchange traded fund (ETF), which is managed by US-based investment management corporation BlackRock Inc.
Ho Seng Yee, CEO of RHB Asset Management said, “Globally, ETFs have grown into more than a US$2.7 trillion investment industry over the last 10 years, making this one of, if not, the fastest growing investment products worldwide.”
The funds are open to individuals whose total net personal assets, or total net joint assets with their spouse, exceed RM3 million.
Individuals who have a gross annual income exceeding RM300,000, or who jointly with their spouse have a gross annual income exceeding RM400,000, also qualify.
The series of funds have a minimum investment amount of RM20,000, with an initial offer price of RM1 per unit.
Sales fees for the series of beta funds are set at 2% — significantly less than the usual 5% for actively managed funds. These funds provide customers with the option of trading for short-term investment views, and efficient and convenient access to a range of exposures.
The initial offer period runs until May 3, 2015. The funds are distributed exclusively by OCBC Bank.