Thursday 28 Mar 2024
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RHB Asset Management Sdn Bhd (RHBAM) has officially launched a “risk-mitigating” wholesale fund that “navigates potential growth” to cater for funds, corporations and high net worth individuals. Named RHB-OSK Global Equity Stabiliser Fund, it aims to provide income and capital growth over the medium to long term, according RHBAM.

The fund, whose trustee is TMF Trustees Malaysia Bhd, was launched on Jan 15, with initial offer price of RM1 per unit for 21 days (until Feb 4). RHBAM is a wholly-owned subsidiary of RHB Investment Bank Bhd.

Ho Seng Yee, CEO/regional head of group retail distribution, said, “The fund intends to meet its objectives by investing in the Schroder Global Equity Stabiliser (GES) Fund, which is denominated in Singapore dollars and managed by Schroder Investment Management (Singapore) Ltd. Besides the potential for capital growth and regular dividend income, GES possesses a ‘stabiliser mechanism’ that assists in reducing and limiting losses during volatile global equity market conditions.

“We believe the recommended approach to investing in equities in 2015 is to be diversified across sectors and regions. With increasing volatility in the markets, an investor should consider a strategy that encompasses an equity theme with dividends, has low sensitivity to rising interest rates and a downside risk protection strategy that is systematic and straightforward.”

GES is an open-end collective investment scheme domiciled in Singapore launched on March 6, 2014, according to a statement by RHBAM. At least 95% of the fund’s net asset value will be invested in units of Schroder GES and 2% to 5% will be invested in liquid assets, such as money market instrument and deposits.

For individuals, subscription is open to those with net personal assets, or total net joint assets with their spouse, exceeding RM3 million. Individuals with a gross annual income exceeding RM300,000, or who jointly with their spouse have a gross annual income exceeding RM400,000, are also targeted investors.

The fund is also open to corporations with total net assets of more than RM10 million, unit trusts schemes, private retirement schemes and closed-end funds. The minimum investment is RM20,000, with subsequent investments of RM10,000.

Sales charges can go up to 5.5% of the investment amount and a repurchase charge of 1% of the redemption amount is payable if one redeems his/her investments within six months of Feb 4. After the six months, there will be no repurchase charge levied and all repurchase charges paid by the fund’s unit holders will be retained by the manager, according to the brochure of the fund.

At a press briefing today, Ho said, “We target to grow the RHBAM group assets under management to RM58 billion by end-2015. For our Malaysian business, we are looking at a significant and positive contribution to the targeted assets under management. This will be done through 16 new product launches this year.”

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