Malaysia Unit Trusts

Pelaburan MARA unit declares income distribution for Dana Bestari

noreply@blogger.com (Anonymous) — Tue, 30 Sep 2014 15:18:00 +0000

TheStar Press: KUALA LUMPUR: Pelaburan MARA Bhd’s PMB Investment Bhd has declared an income distribution of three sen per unit for the PMB Dana Bestari.

It said on Tuesday the distribution was for Dana Bestari’s financial year ended Sept 30, 2014.

“The distribution, to be made in the form of new units, represents a yield of 7.4% over the fund’s net asset value as at Aug 15, 2013. The year-end of the fund was recently changed to Sept 30,” it said.

PMB Investment said Dana Bestari is a growth and income Shariah-compliant equity fund that invests primarily in a diversified portfolio of Shariah-compliant equity and equity related securities of companies listed on Bursa Malaysia to achieve a steady return and capital growth in the medium- to long-term.

All unit holders of Dana Bestari on the register at the close of Sept 30, are entitled to the distribution in the form of units.

PMB Investment Bhd, was formerly known as ASM Investment Services Bhd, is a member of Pelaburan MARA, one of the pioneers in the nation’s unit trust management industry.

PMB Investment manages 10 equity unit trust funds, two mixed asset unit trust funds, a cash management unit trust fund, a wholesale income fund, a closed-end principal protected fund and several discretionary equity and Sukuk portfolios.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Public Mutual declares distributions for three funds

noreply@blogger.com (Anonymous) — Tue, 30 Sep 2014 15:17:00 +0000

TheStar: KUALA LUMPUR: Public Bank’s unit Public Mutual has declared distributions for three of its funds, ranging from one sen to three sen, for the financial year ended Sept 30, 2014.

Public Mutual said on Tuesday that for the Public Singapore Equity Fund, the distribution was 1.25 sen per unit.

As for the Public Strategic SmallCap Fund, the distribution was one sen per unit.

For the Public Enterprises Bond Fund, the distribution was three sen per unit

Public Mutual said the Public Singapore Equity Fund aims to achieve capital growth over the medium- to long-term period by investing in a portfolio of investments primarily in the Singapore market.

Public Strategic SmallCap Fund aims to achieve capital appreciation over the medium- to long-term period through investments primarily in companies with small market capitalisation.

As for the Public Enterprises Bond Fund, its objective is to provide annual income through investments in fixed income securities and money market instruments.

Stocks to maintain edge over bonds

noreply@blogger.com (Anonymous) — Mon, 15 Sep 2014 14:32:00 +0000

NSTPress: THE recent wobbly stretch in both stocks and bonds may persist for the short term if the United States Federal Reserve (Fed) this week lives up to expectations and signals the days of near-zero interest rates are numbered, but it is unlikely to tip valuation scales in favour of bonds any time soon.

Anxiety over the two-day Fed policy meeting, centred on expectations the central bank will likely drop its pledge to keep interest rates low for a “considerable time”, was a primary driver behind stocks snapping a five-week winning streak last week and bonds absorbing their steepest losses in at least two months.

Top economists at several firms say they see at least even odds the Fed will nix the phrase from its forward guidance, which some traders may interpret as meaning that rate hikes could come as early as next March.

“If investors feel the Fed is becoming more hawkish, that’s actually a negative for all asset classes with the exception of the dollar,” said Chris Gaffney, senior market strategist at EverBank Wealth Management in St Louis, Missouri.

Still, few expect such a move would translate immediately into a long-term change in investors’ bullish view of stocks, especially relative to bonds.

To be sure, signs of sooner-than-expected interest rate hikes could chip away at investors’ optimistic view of stocks, which scaled to new heights in no small part thanks to the Fed’s quantitative easing programme and decision to hold interest rates near zero per cent for nearly six years now.

But with bond yields still extraordinarily low by historic standards, and unlikely to rise drastically, many investors see equities as one of their few prospects for long-term growth.

Market watchers say it is unlikely the prospect of interest rate hikes will significantly dampen investors’ taste for stocks or prompt a large-scale reallocation of funds into bonds.

“There’s no doubt that there will be some volatility in the short term, but at some point equilibrium will come into the market,” said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

While measures such as the forward price-to-earnings ratio on the S&P 500 suggest stocks are their priciest in nearly a decade, other measures of relative valuation to bonds remain skewed in favour of equities.

The S&P’s so-called earnings yield, the inverse of the price/earnings ratio and a common yard stick for comparing equity valuations against bonds, is roughly 6.3 per cent. That is 3.7 percentage points higher than the 10-year Treasury yield, currently 2.6 per cent, whereas the long-term spread between the two is about 1.5 percentage points.

When measured against corporate junk bonds, the bond market’s biggest competitor to stocks for asset flow, valuation math is tilted even more heavily in favour of equities. The average yield to maturity on junk bonds is just 6.3 per cent, according to Bank of America/Merrill Lynch fixed income index data, but the long-term average junk yield is 9.4 per cent.

Moreover, US corporate earnings are projected to resume double-digit growth in coming quarters, according to Thomson Reuters data, which would keep a lid on P/E multiple expansion, perhaps even compress it if profit growth outpaces stock price increases.

That suggests stocks remain the better bet for returns, at least until interest rates rise significantly enough to return relative valuation measures between the two to historic norms.

In the current market environment, “there’s not really a better alternative to stocks right now”, says Gaffney. Reuters

Axis REIT set to breach RM2b mark

noreply@blogger.com (Anonymous) — Wed, 10 Sep 2014 13:24:00 +0000

NSTPress: AXIS Real Estate Investment Trust Managers Bhd (Axis REIT), which has 30 properties in its trust worth about RM1.52 billion, expects to surpass the RM2 billion mark with the acquisition of five new properties for RM472 million this year.

Axis REIT Managers Bhd (ARMB) chief executive officer Datuk Stewart LaBrooy said based on the projected unit holdings, it expects the five properties to yield an additional 2.1 sen per annum to its income distribution per unit (DPU) for 2015.

The trust’s first quarter core net profit of RM22.3 million improved by 8.5 per cent year-on-year and 3.9 per cent quarter-on-quarter, in line with most analysts’ estimates.

It announced a DPU of 5.3 sen, a 17.8 per cent rise year-on-year, which included a special 80 sen DPU arising from the Axis Plaza disposal on March 25.

For the first half of fiscal year 2014, Axis REIT posted a RM43 million net profit, while total DPU was 10.6 sen.

This was 3.1 per cent and 16.5 per cent more than the same period last year.

“Portfolio growth has always been a core strategy of Axis REIT. We have demonstrated this by increasing our portfolio size from five to 30 assets over the past nine years and this is expected to expand to 35 assets by the end of 2014. However, we do not buy real estate for the sake of growing.

“In 2013, we held back from acquiring any assets because the market was overheated and asset prices were inflated with low yields.

Therefore, we held back from buying anything until this year when we see valuations and yields returning to normalcy.

“In addition, we have been actively been involved with asset enhancement initiatives (AEIs) for our portfolio. This involves the continuous improvement of our assets to attract higher rentals and better returns,” he said.

Recent projects that underwent AEIs include Quattro West, Infinite Centre and Axis Business Park. Axis REIT is currently working on Axis Business Park Block C.

“This drives rental and valuations, providing our unitholders with more valuable real estate and dividend returns in the long term,” LaBrooy said.

On what would be the optimum asset size for Axis REIT to improve investor interest, LaBrooy said Axis REIT has one of the highest free floats of their units in the Malaysian REIT space, whereby only 16 per cent of the units are retained by the promoters.

“However, we are heavily subscribed locally with our international component remaining low at 7.64 per cent. From our experience, the interest from foreign investors is trig gered when a fund size is larger than US$1 billion (RM3.16 billion),” he said.

LaBrooy added that there is growing interest in Axis REIT from foreign funds but the stocks liquidity is still not optimum to attract many international funds.

“So our initial target will be to cross the US$1 billion mark. However, in saying that, there is no optimum asset size for Axis REIT.

We hold a firm belief that we are not in a contest to see how big we can become but rather what assets we can add to the portfolio that will reward our unitholders in the long run.

We will grow but only with quality,” he said.

Riding on real estate investment trusts

noreply@blogger.com (Anonymous) — Wed, 10 Sep 2014 13:23:00 +0000

NSTPress: REAL Estate Investment Trust (REIT) is the best ally when it comes to a balance of risk-return for long-term value investing.

The fact is, predictability is what REIT stocks offer.

While the dividend per share (DPS) of many dividend-paying companies (including blue chips) were affected post-2008 recession, the DPS of many Malaysian REITs (M-REITS) remained unscathed, which speaks volumes about the competency of the managers and defensiveness of REIT assets.

The operations of a REIT are governed by a trust deed, which specifies how the manager manages and administers the REIT in line with its objectives.

REIT is also regulated by the Securities Commission in terms of how much it could borrow to invest in real estate. This basically prevents a situation where a REIT becomes overgeared and unable to repay its debt obligations.

The best thing about REIT is its dividend-yielding nature, where it distributes up to 90 per cent of its taxable income to investors.

REIT investment has also brought a good amount of profits for its investors, averaging between six and eight per cent.

Affin Investment Bank maintains its neutral stance on the M-REIT sector.

Based on its research note in April, it said the M-REITs cycle is peaking, while the outlook for upward rental reversion appears to be moderating.

“We believe that the M-REITs sector remains a landlord’s market until 2017. Our ‘neutral’ rating is underpinned by our view that the M-REITs’ yield spread against the 10-year MGS may plateau. The stable economic growth may underpin the M-REITs’ stability amid rising inflation,” it said.

In Malaysia, there are currently 14 REIT counters and the policy of growth rests with the board of each REIT manager of the respective REITS.

With today’s economic climate, the larger M-REITs, such as those above RM1 billion in market capitalisation, are performing better than the smaller ones and command premiums to their net asset values (NAVs).

“It points to the ability of the respective REIT managers to grow the size and returns of the various trusts.

Availability of suitable assets that are yield-accretive can be very challenging, especially for the office and mall sectors, where prices are currently sky high and yields are very low.

“The acquisition policy of all the REITs now is either from third parties or from their respective promoters.

What can be done would be to allow M-REITs to develop up to 10 per cent of their asset size like in Singapore and Hong Kong, where the regulators have recognised the difficulties of REIT to grow in the traditional manner,” Axis REIT Managers Bhd (ARMB) chief executive officer Datuk Stewart LaBrooy told Property Times.

On whether there are enough assets available for M-REITs to grow, LaBrooy said there is no shortage of products coming into the market.

“There is a large number of malls and offices being built both in the Klang Valley and Johor that could, over time, become acquisition targets for M-REITs with those asset classes in mind. The glut may drive down prices and offer REITs an opportunity to acquire assets at more attractive prices. The respective managers have to be able to read the cycle and act accordingly,” he said.

“In performance terms, we have tracked the Kuala Lumpur stock exchange fairly closely and in past years outperformed the exchange.

Other M-REITs have displayed similar characteristics,” LaBrooy said.

ARMB is the manager for Axis Real Estate Investment Trust Managers Bhd (Axis REIT), which has a market cap of RM1.53 billion. The trust has 30 properties worth about RM1.52 billion.

Axis REIT is proposing to acquire three new properties for RM280.5 million.

Labrooy said the total asset value of the fund will be RM1.87 billion after the acquisition of the new properties, of which sale and purchase agreements (SAP) have been executed on August 4.

The properties are located in prime areas in Shah Alam.

Axis REIT is also in the midst of acquiring two industrial facilities in Penang, and Johor for RM191.5 million where the vendors have accepted its Letters of Offer.

With the signing of the SAP for the two industrial properties, the fund will cross the RM2 billion mark in total assets, LaBrooy said.

He added that the acquisition of all the five properties is expected to be completed by the end of this year, and they are expected to generate a net income (before financing cost) of seven per cent each.

SC organises investment awareness and literacy campaign

noreply@blogger.com (Anonymous) — Wed, 10 Sep 2014 13:20:00 +0000

TheStar: PETALING JAYA: The Securities Commission (SC) is organising InvestSmart, a comprehensive investment awareness and literacy campaign.

“InvestSmart Fest is the first retail investor event of its kind organised by the SC, with 37 other key capital market industry players,” chairman Datuk Ranjit Ajit Singh said in a statement.

The six-day event, which began yesterday at 1 Utama Shopping Centre, ends on Sunday.

Minimum returns for investment-linked products?

noreply@blogger.com (Anonymous) — Mon, 08 Sep 2014 09:43:00 +0000

TheStar: A dire concern in the life insurance industry relating to investment-linked policies (ILP) – a minimum guaranteed sum as returns for such policies – is being sorted out.

A source from the National Association of Malaysian Life Insurance Field Force and Advisers (Namlifa), which had voiced its concern on the matter, told StarBizthat officials from Namlifa had informal talks with some officers from the central bank.

The source said they had highlighted the need to offer a minimum guaranteed sum to protect policyholders of ILPs against aggressive risk-taking by insurers in their investment strategies.

The minimum guaranteed sum which Namlifa is looking at is anywhere between the current fixed deposit rates and Employees Provident Fund (EPF) returns. This, the source said, was to ensure equitable protection and returns to policyholders.

ILPs or commonly known as investment-linked products have both life insurance protection and investment components. Investment-linked products are among the fastest growing products in the life insurance segment. In the first half of 2014, they grew by 59.4% to RM1.68bil and last year these products grew by 59.5% to RM3,26bil.

Some consumers prefer ILPs as they want more exposure to investments than other life insurance products, thus transferring the risk to the consumer.

The premiums are used to buy units in investment–linked funds of the policy-holder’s choice and used as cost of insurance for life insurance protection.

At the moment, ILPs usually do not have a minimum guaranteed cash value. The value of the ILP depends on the price of the units in the fund which in turn depends on the fund’s performance in the market. The cash value is further exhausted by the escalating cost of insurance at an older age.

According to the source, insurers should consider a minimum guarantee of return as ILPs are actuarially calculated, taking into account the uncertainties of the future including fluctuation of equities based on historical performances and inflation.

“We are of the opinion that the returns should be realistic, with a minimum guarantee on returns. Assurance should be given to the policyholder with a guaranteed protection and a reasonable return for holding on the policy for the long term.

On another matter, he said insurance companies were also now cutting down on bonuses on traditional products because of the higher costs of doing business due to poor market performances.

Some industry observers reckon the move by Namlifa will gain support from consumer associations and policyholders, and this will add pressure on the regulator to look seriously into providing a minimum guaranteed sum for investment-linked products. This is because these products are among the top-selling products of life insurance companies.

Meanwhile, Consumers Association of Penang (CAP) president S.M. Mohamed Idris said having a minimum guaranteed sum did not mean that consumers would be better off.

“What about limiting the relevant charges?” he asked. “Based on the many complaints that we have, consumers have not been made fully aware of how ILP works and the risk involved when the wrong product is chosen. Thus they end up making losses.

“Consumers who had no interest in getting another insurance policy were told that they would be investing their money only later to discover that it is an ILP.

“Life insurance is about protection for dependents. Thus we believe that investments and protection should be two separate issues. It is already difficult for consumers to understand regular policies like whole life and term, and ILP is even more complicated,” he said.

Public Mutual declares RM437m in distributions

noreply@blogger.com (admin) — Thu, 28 Aug 2014 15:04:00 +0000

TheStar

KUALA LUMPUR: Public Mutual has declared gross distributions totalling RM437mil for 10 of its funds for the financial period ending July 31, 2014.

Public Mutual, which is a unit of Public Bank, said on Thursday the gross distribution per unit for Public Growth Fund was 3.25 sen while for the Public Optimal Growth Fund and Public Far-East Property & Resorts Fund it was 2.5 sen per unit.

As for Public Australia Equity Fund, it was 2.0 sen per unit, Public Islamic Opportunities Fund (3.0 sen), Public Islamic Select Enterprises Fund (2.50 sen) and Public Bond Fund (5.50 sen).

Public Mutual said for the three funds -- Public Islamic Select Bond Fund, Public Islamic Income Fund and PBB MTN Fund 1 -- the gross distribution was 4.0 sen per unit for each of the fund.

Public Mutual has more than 90 unit trust funds under management and over three million account holders.

As at end-June 2014, the total net asset value of the funds managed by the company was RM64.20bil.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

TA’s unit to buy Trump Hotel for RM294 million

noreply@blogger.com (admin) — Thu, 28 Aug 2014 14:59:00 +0000

NST Press

KUALA LUMPUR: TA Global Bhd's unit, Maxfine International Ltd, is proposing to acquire the Trump International Hotel and Tower in Canada for RM293.71 million, cash.

In a filing to Bursa Malaysia, the company said the purchase consideration would be funded by external borrowings and internally-generated funds.

"The purposed acquisition is expected to bring synergy to the group and

further enhance its hospitality in major cities around the world," it said.

Baring unforeseen circumstances, the company said the acquisition process would be completed in June 2016. -- BERNAMA

ING Funds doing well, one of the 23 giving 30% returns

noreply@blogger.com (admin) — Fri, 04 Dec 2009 12:10:00 +0000

TheStar

KUALA LUMPUR: ING Funds Bhd says most of its 23 funds performed well this year, with one paying out as much as 30 per cent returns a year despite the sluggish economic climate.

The funds under management now are worth RM3.4 billion, higher than last year's RM2.7 billion, said CEO Datuk Steve Ong to reporters on the sidelines of the two-day 14th Malaysian Capital Market Summit 2009 which began yesterday.

ING Funds is the Malaysian affiliate of ING Investment Management, the investment arm of the ING Group.

Launched in 2004, ING Funds had become one of the fast-growing private unit trust management companies.

Ong said the "appetite" for unit trust schemes was still there despite the projected slower pace of economic recovery next year.

"Demand is huge out there, but it is subject to investors' needs whether it is for wealth, education or even retirement," he said.

Ong said there was ample liquidity in the financial system to be tapped, namely the massive Employees Provident Fund and bank deposits.

"Even in post-retirement, retirees need someone to manage his or her money properly, if not their money will be gone in just two or three years if it is spent freely," he said.

Next year, besides offering new products, the company planned to focus more on unitholders in managing their investments.

"We will assist them in managing their investments so that they will know the progress of their investments.

"We may give them more fund choices to help them re-balance their position at any economic situation," he added. - Bernama

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Asset managers: Further upheavals expected within next decade

noreply@blogger.com (admin) — Wed, 26 Aug 2009 12:19:00 +0000

TheEdge

KUALA LUMPUR: The worst of the current economic crisis may be over in 2010 but asset managers have not ruled out further upheavals within the next decade.

According to a survey on 225 asset managers in 30 countries carried out by Principal Global Investors, most respondents do not rule out more systemic crises in the next decade. It said the scale of recent economic stimulus in G20 countries was expected to stoke inflation.

“We are not completely out of the credit crunch yet. Getting credit going is the key initiative for central banks for the next year. They have been flooding the market with liquidity in hope of getting credit moving again.

“But a lot of times, this is just simply liquidity. It is not generating new credit. And there is recognition that credit is a necessary evil in the economy,” COO of Principal Global Investors Barbara McKenzie said at a CIMB Principal Asset Management Bhd media briefing yesterday.

She added that until the market could get back on its feet again, it would continue to need access to credit and thus more government aid.

NEW CREDIT NEEDED TO FUEL ECONOMY... Markets need access to credit until they get back on their feet again, says Principal Global Investors COO Barbara McKenzie (right) at CIMB-Principal Asset Management Bhd media briefing in Kuala Lumpur yesterday. Also present were CIMB-Principal Asset Management chief executive Datuk Noripah Kamso (left) and Principal Global Investors (S) Ltd MD for Asia ex Japan Kirk West. Photo by Suhaimi Yusuf

The survey also found that 45% of its respondents did not expect the worst of the crisis to be over till the first half of next year while 25% expected it to be even later.

The 225 asset managers and pension funds surveyed were responsible for collective assets worth US$18.2 trillion (RM63.9 trillion) as at April 2009.

“We are now primarily driven by retail industries locally, significant fiscal stimulus and low interest rates. All these will naturally fade.

“However, the stimulus will eventually have to be removed and the key timing to withdraw this stimulus and how it is removed are important to consider as we are juggling between growth and potential inflation.

“But that will be in the second half of 2010,” Principal Global Investors (S) Ltd managing director for Asia ex Japan, Kirk West said.

On the survey findings, West added that although it was carried out during “the eye of the storm”, the results could be used to study investor behaviour moving forward.

“People have lost confidence in a lot of the longer-term growth assets. The whole concept of equity risk premium has made people feel uncomfortable. They will now be looking at increased liquidity.

“Several things eroded investor confidence during the crisis, especially the fact that diversification of assets hasn’t worked in the short term because of deleveraging. Going forward, however, we still believe in diversification,” said West.

He added that asset managers also expected further regulatory pressures to intensify over the next three years which may result in fee compression.

Consequently, West said a majority of firms had shown a significant revenue decline of 35%.

“One of the key issues we’ve seen in the last 12 months is compensation within the finance industry. We expect one outcome will be greater alignment in terms of compensation. So, maybe people will have lower fixed compensation, and a higher component of variable compensation and this will be more aligned with the performance of the underlying funds,” he said.

McKenzie said there was already a movement of money away from some of the traditional hedge funds centre that had light regulations to other offshore jurisdictions with higher regulatory standard as investors started understanding a need for greater regulation post crisis.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Singapore's UOB Asset, India's UTI in funds tie-up

noreply@blogger.com (admin) — Wed, 26 Aug 2009 12:15:00 +0000

BusinessTimes

SINGAPORE: Singapore's United Overseas Bank (UOB) said yesterday its fund management arm has formed an alliance with a unit of India's UTI Asset Management to jointly launch and distribute mutual funds.

"The first initiative of the alliance is an equity fund that both parties have jointly developed," UOB Asset Management (UOBAM) said in a statement.

"The features of the fund will be announced at a later date."

UOBAM manages about S$13.5 billion (S$1 = RM2.44) in assets and has business operations in Singapore, Brunei, Japan, Malaysia, Taiwan and Thailand.

Its partner UTI International (Singapore) is a joint venture involving India's largest mutual fund company UTI, Shinsei Investments and another company.

UTI manages around US$15 billion (US$1 = RM3.51) and its funds are distributed in 450 of India's 620 districts, UOBAM said. - Reuters

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Fund managers cut exposure on China

noreply@blogger.com (admin) — Mon, 24 Aug 2009 12:10:00 +0000

TheEdge

KUALA LUMPUR: Fund managers have recently shifted their investment focus to Europe, the Middle East and Africa (EMEA) away from Asia, especially China, according to one Bank of America Merill Lynch (BOA-ML) survey.

It said based on its August survey, there was a "big rotation" to EMEA and away from Asia.

In a statement last Thursday, the bank said the main driver of this investment pattern was the "switching" to Russia and out of China, which saw its stock market entering bear territory last week, having plunged over 20% from the year’s peak.

A total of 204 fund managers, managing a total of US$554 billion (RM1.95 trillion), participated in the global survey from Aug 7-12. A total of 177 managers, armed with US$370 billion, participated in the regional surveys.

BOA-ML noted that in two years, China saw the lowest number of overweight positions by fund managers while South Korea got its first overweight call.

It added that investors had also sharply cut exposure to Chinese equities to "neutral".

The survey also showed more investors were becoming less optimistic in August on China economic growth compared to June while optimism on European growth prospects surged in August.

The most favoured global emerging market (GEM) markets are growth or liquidity plays such as Russia, Turkey, and Indonesia while the least favoured are the defensive markets such as Chile and Malaysia.

On specific sectors, BOA-ML said "consumer discretionary" and financials were the only sectors tagged with overweight calls.

"Most unloved sectors in GEM portfolios are utilities and healthcare," it said, adding that TECHNOLOGY [] stocks were the strongest engines behind the early recovery of GEM markets.

BOA-ML said globally, technology too remained the number one sector, with 28% of the global panel putting an overweight stance on the industry.

The bank said investors within GEM were positive about banks with a net 17% of fund managers in the regional survey overweight on bank stocks. It said 60% of the fund managers believed global corporate earnings could rise by over 10% over the next 12 months. Interestingly, it added, balance sheet repair was becoming less of a concern to investors.

Meanwhile, on the local front, fund managers like HwangDBS Investment Management Bhd is also bullish on finance stocks.

Its head of equities Gan Eng Peng told The Edge Financial Daily that the finance sector offered one of the best exposures to the economic recovery story.

Gan said despite a recent increase in volatility within the financial sector, valuations remained attractive over the next one to three years.

"Even at current valuations, the global financial sector represents a window of opportunity which has not been open for the last 10 to 20 years," he added.

Gan said as for the PLANTATION [] sector, shares of large-cap plantation companies in Malaysia had hardly corrected and their valuations remained too high.

"We think investors can get much better value and faster returns in the Indonesian names listed in Singapore," he added.

Gan said it also remained positive on the CONSTRUCTION [] sector, as it had performed relatively well in the current market rebound.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

3.56 sen payout for Pru fund unit holders

noreply@blogger.com (admin) — Mon, 24 Aug 2009 12:06:00 +0000

BusinessTimes

PRUDENTIAL Fund Management Bhd (PFMB) has declared an income distribution of 3.56 sen per unit to unit holders of Prudential Balanced Fund. The distribution is equivalent to 5 per cent on Net Asset Value of the Fund as at 31 July 2009.

All unit holders who have maintained their unit holdings as at 24 August 2009 will be entitled to this income distribution.

PRUbalanced fund invests in a mixed portfolio of companies with good dividend yield and low price volatility and a portfolio of investment-grade fixed-income securities.

The Fund has met is objective of providing investors with capital appreciation and a reasonable level of income over the longer term. The Fund charted a 1, 3 and 5-year return of 5.01 per cent, 32.27 per cent and 41.30 per cent respectively.

Since its inception on 29 May 2001, the Fund recorded a return of 117.98 per cent, outperforming its benchmark, by 48.20 per cent.

This would be the fourth income distribution for the Fund since its inception.

“The Fund benefited from selected big-cap holdings especially the banks, as investors positioned their funds to reflect the new weighting in the new FBMKLCI index. The banking sector comprises a major sector weighting for the new index. The Fund’s exposure in corporate bonds also helped the Fund’s relative performance as corporate bonds yield higher returns than the benchmark RAM quant shop Medium Index in June,” PFMB CEO-Designate Thomas Cheong said in a statement.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmFirst REIT posts moderate Q1 growth

noreply@blogger.com (admin) — Mon, 24 Aug 2009 12:00:00 +0000

BusinessTimes

Am ARA REIT Managers Sdn Bhd, the Manager of AmFIRST Real Estate Investment Trust (AmFIRST), has posted revenue of RM23.65 million for the first quarter ended 30 June 2009, a 5 per cent increase from RM22.52 million registered in the previous corresponding quarter.

Net property income for the period grew marginally to RM15.23 million compared to RM15.07 million in the corresponding period last year, while profit after tax rose 10 per cent to RM10.58 million against RM9.60 million before. Earnings per unit was 2.47 sen.

The improved performance arose from the contribution of income derived from positive rental reversions recorded from its three properties - Kelana Brem Towers, The Summit Subang USJ and Menara AmBank.

“AmFIRST achieved a set of favourable income for the first quarter despite the current global economic slowdown, that have also impacted the REITs industry worldwide,” chief executive officer Lim Yoon Peng said in a statement.

He said the properties also continue to attract and retain quality tenants, thus generating steady rental income for the Trust.

For this year, the manager has lined up enhancement and repositioning works for its properties. The first building involved – Menara Merais in Petaling Jaya - should see its renovation works completed by November this year.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

EPF returns on the slide

noreply@blogger.com (admin) — Thu, 19 Mar 2009 14:01:00 +0000

TheStar

Difficult to sustain payouts above 5% in coming years

PETALING JAYA: Employees Provident Fund (EPF) contributors may have to be contented with lower returns in the coming years as the country’s biggest pension fund struggles to boost income amid steep falls in interest rates and a weak equity market.

Analysts said given the pension fund’s size and strict mandate, it would be very difficult to sustain payouts of above 5% in the coming years.

The 4.5% dividend declared for 2008 on Monday was generally well received, despite coming in lower than the 5.8% in 2007.

There were calls for a review from various parties demanding a higher payout, but some quarters said the pension fund had done well in safeguarding the nation’s retirement savings amid the current economic crisis.

The question now is how will EPF fare in 2009 and beyond?

Already the fund has warned that this year’s payout would be less than that for 2008.

Weak equity markets will continue to hurt EPF in the near term, but in the longer term, the fund’s performance will also be determined by the returns it gets from investing in low-risk assets such as government bonds.

The EPF had allocated a quarter of its RM342bil investment funds for higher yielding government papers. But as these higher yielding notes expire, the fund must purchase new issues which will now come with lower returns.

Malaysian Government Securities (MGS) debt papers maturing in three and five years are currently yielding less than 4% at today’s prices.

In comparison, MGS five-year notes yielded more than 5% a decade ago and above 7% during the 1997/98 Asian financial crisis.

Another big chunk of EPF holdings is in highly rated corporate bonds and low-risk guaranteed loans.

However, the global economic turmoil has cut the supply of new bonds coming into the market.

Cheaper lending rates had also reduced interest income from loans given out.

Investment in bonds and loans made up 40% of EPF’s total investments as at the end of last year.

Dwindling yields from these asset classes have been a drag on EPF’s income for the past couple of years.

That the EPF was able to fork out steady dividends of above 5% between 2004 and 2007 was mainly due to gains from investments in equities.

The collapse in global equities last year, however, had eroded the value of EPF’s shareholdings, forcing it to make a provision of RM4.69bil to account for the lower value of its shares, both domestically and abroad.

The KL Composite Index fell 40% in 2008 and was down 3.3% so far this year at yesterday’s closing of 847.96 points.

Also, the economic slowdown has dragged down corporate profits. This, in turn, has impaired their ability to pay out dividends to shareholders, further reducing the return on investments for EPF.

The EPF has stakes in more than 100 companies listed on Bursa Malaysia, as well as smaller stakes in a number of big listed firms overseas.

Income from equities accounted for 35%, or RM6.67bil, of EPF’s total gross investment income last year.

Just how bad EPF’s dividend payouts will be affected by the current market situation remains to be seen.

It is worth noting that under the law, EPF has to maintain a dividend rate of at least 2.5% annually. The dividend must come from income generated from its investments.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Islamic funds’ asset growth likely to slow

noreply@blogger.com (admin) — Thu, 19 Mar 2009 13:58:00 +0000

TheStar

But long-term recovery is certain, says KFH

KUALA LUMPUR: The rate of asset growth of funds in Islamic financial institutions this year is expected to be slower than in 2008, says Kuwait Finance House (M) Bhd managing director Datuk K. Salman Younis.

He said this was due to the prevailing global economic downturn but added that long-term recovery was certain.

“We believe asset growth of Islamic funds will be back to its strong level once the global economy improves,” he said at the Dow Jones Islamic Market Indexes media briefing yesterday.

Salman said there was huge potential for Malaysia to be the leading Islamic financial hub in the region and for Islamic financing to be the country’s key pillar of growth.

According to The Banker, a global financing intelligence magazine, the top 500 Islamic financial institutions charted a 27.6% asset growth to US$639.1bil in 2008 compared with US$500.1bil the previous year.

The major contributors to asset growth for Islamic funds are Gulf Cooperation Council (GCC) countries (US$262.7bil); Asia (US$67.1bil), led by Malaysia; Australia/Europe/the United States (US$35.3bil); and non-GCC Middle East countries, Middle East and North Africa (US$248.3bil).

PricewaterhouseCoopers Taxation Services Sdn Bhd senior executive director (Islamic financial services practice) Jennifer Chang concurred with Salman’s view on Malaysia’s potential as the region’s Islamic financial hub.

For instance, she said, Malaysia’s takaful industry had doubled in asset size over the last five years and its penetration rate was expected to reach 20% by 2010, compared with 6.5% currently.

She added that Malaysia was the largest player with 20% share of the global takaful business worth US$4bil.

Chang also said that as at end-November 2008, there were 149 Islamic funds domicled and managed in Malaysia, compared with 131 in Saudi Arabia.

“This is despite Malaysia’s total Islamic assets under management being only US$4.64bil, compared with Saudi Arabia at US$13.9bil for the period under review,” she said.

As at April 2008, the total Islamic assets under management worldwide is believed to be US$33.9bil.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

OSK, Singapore iFast launch All-Equity Fund Index

noreply@blogger.com (admin) — Wed, 18 Mar 2009 15:35:00 +0000

TheEdge

KUALA LUMPUR: iFAST Capital Sdn Bhd, a joint venture between OSK Investment Bank Bhd and Singapore's iFAST Corporation Pte Ltd, launched the Fundsupermart.com All-Equity Fund Index (FEFI) yesterday.

It is the first index in Malaysia that tracks returns of unit trust funds, acting as a barometer of equity unit trusts' performance here. OSK Investment Bank holds 49% of the joint venture, while iFAST Corp owns the remaining 51%.

Speaking at the launch yesterday, Fundsupermart.com Malaysia and Singapore general manager Wong Sui Jau said up until now investors commonly looked at other indices to monitor the status of the stock market.

"Although these indices mirror the overall situation of the market, they are not specifically designed to provide up-to-date information of unit trusts in Malaysia.

"The launch of FEFI is well-timed in these recessionary times. We welcome FEFI because it encourages investors to plan for the future and take charge of their investments," he said.

FEFI provides investors with a measurement of the aggregate performance of all unique equity funds available to investors on FSM (www.fundsupermart.com).

Wong said there were currently 44 equity funds on the index, and FSM intended to increase this progressively.

The index will be calculated on a daily basis, with the level and the corresponding date displayed on the website.

The website also features a three-month historical index levels, a one-year performance chart and a monthly update on index performance. FEFI is currently available in Singapore, Hong Kong and Malaysia.

Wong said unlike most equity market indices, it was not asset weighted, meaning that returns for a fund with smaller fund size would have the same impact on the index as another fund with a larger fund size.

"The index return thus reflects the mean return of the underlying funds on an equally-weighted basis," he said.

He said the index would be reviewed twice a year (on June 30 and Dec 31) to incorporate funds that had been newly added to the platform. On the selection criteria, he said the funds must be open ended and must have a daily net asset value available.

Wong also said FSM planned to launch a bond fund index within the next few months.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

ASM declares income distribution of 6.25 sen per unit

noreply@blogger.com (admin) — Wed, 18 Mar 2009 15:31:00 +0000

TheStar

KUALA LUMPUR: Amanah Saham Malaysia (ASM) has announced an income distribution of 6.25 sen per unit for the financial year ending March 31, the lowest since the fund’s inception in 2000.

Last year, ASM paid 7.8 sen per unit in income distribution. The income distribution involved a total payout of RM407.58mil, said fund manager Permodalan Nasional Bhd (PNB) chairman Tun Ahmad Sarji Abdul Hamid.

“The payment will benefit a total of 402,513 unitholders who subscribe to 7.21 billion ASM units,” he told a press conference yesterday.

PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said that the fund had the capacity to declare an income distribution of 7.92 sen per unit, but the group decided to reserve the income for the next financial year.

“We feel that 6.25 sen per unit is already in line with the market at this condition,” he said.

He attributed the diminished performance to the global economic downturn and the fund’s 25% increase in the number of units in circulation that had resulted in dividend dilution.

Declining to disclose PNB’s investment strategy going forward, Hamad said PNB’s objective remained creating long-term and sustainable returns for shareholders.

“We are a long-term player; we are looking for opportunity to buy more shares (with good fundamentals and are reasonably priced) that are good for the long term,” he said, adding that PNB was looking to issue more new products this year. He said ASM currently had RM2.1bil in cash.

ASM is a fixed-priced equity-income fund aimed at providing unitholders with a long-term investment opportunity by generating regular and competitive returns through a diversified portfolio of investments.

Up to last Friday, ASM had recorded gross income of RM440.73mil.

Dividend income from investments contributed RM219.33mil (49.76%), profit from the sale of shares generated RM137.84mil (31.28%) and the remaining RM83.56mil (18.96%) came from investments in short-term instruments.

The income distribution was based on the average monthly minimum balance held throughout ASM’s financial year.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

New HwangDBS IM fund hopes to capitalise on anticipated equities upturn

noreply@blogger.com (admin) — Wed, 18 Mar 2009 15:23:00 +0000

TheStar

KUALA LUMPUR: HwangDBS Investment Management Bhd (HwangDBS IM) sees recovery in US equities in the coming months and aims to capitalise on it now by launching a fund that tracks the Standard and Poor’s 500.

The S&P 500 Index was expected to recover by as early as the second half of this year on the back of economic stimulus measures, said HwangDBS IM chief executive officer and executive director Teng Chee Wai.

The S&P 500 had tumbled 52% from its peak of 1,565 points on Oct 9, 2007 to 754 points on Monday.

It is the most tracked index of American equities after the Dow Jones Industrial Average.

“The current market downturn should be seen as part and parcel of market cycles and, essentially, investing is certainly a long-term approach and should not be taken as a means to make a quick buck,” Teng told reporters at the launch of HwangDBS US Access 80, its first fund this year.

“The US Access 80 was mooted on the premise of capitalising on the bearish global sentiment to gain substantial headway into the S&P 500 at a highly attractive valuation,” he added.

“(S&P 500) comprises American stocks with the largest market capitalisation such as Coca-Cola, Wal-Mart and McDonald’s, that would, in boom time, cost investors an arm and a leg to own due to the premium they command,” he noted.

The US Access 80 is a mixed-asset, open-ended fund that aims to provide capital appreciation through exposure to the S&P 500 while endeavouring to preserve a minimum of 80% of the fund’s highest net asset value achieved, observed on a daily basis.

“The 20% growth aspect of the fund employs a dynamic and tactical allocation strategy to achieve derivative-type active asset exposure on the S&P 500 to ultimately deliver better-than-average results. This strategy allows progressive lock-in gains while raising the preservation limit,” Teng said.

“Investors today are looking for investments that guard them against the ravages of the financial crisis and by nature, we recognise the importance of avoiding investments in highly leveraged companies and complex derivatives,” he said.

HwangDBS IM aims to secure up to RM100mil in sales for the US Access 80 in the next six months.

Aimed at retail clients, the minimum initial investment for the fund is RM1,000.

It has an approved fund size of 300 million units retailing at RM1 each during the initial offer period.

According to Teng, HwangDBS IM will continue to launch more funds this year to boost its assets under management which stood at RM5.6bil at end-December.

A year earlier, its assets under management stood at RM6.1bil.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmIslamic to double assets under mgmt

noreply@blogger.com (admin) — Mon, 02 Mar 2009 14:09:00 +0000

TheEdge

AmIslamic Fund Management Sdn Bhd, a new unit under the AmInvestment Bank Group, expects its Islamic assets to more than double over the next two years.

AmInvestment Bank group chief executive officer for the Funds Management Division Datin Maznah Mahbob said, the Islamic assets under management were close to RM1 billion at present.

She said there were a lot of opportunities for customised Shariah-compliant investment solutions despite the global economic downturn.

"We have a dedicated team of Islamic specialists to provide customised Shariah-compliant investment solutions for institutional investors.

We are optimistic that we can easily more than double, the funds under management which are Islamic assets, within the next couple of years," she said at the media briefing on AmIslamic Funds Management here today.

Maznah said the Islamic fund management company plans to launch more than two new funds this year.

AmIslamic Funds Management which was incorporated last year offers a comprehensive and innovative range of Shariah-compliant funds management services that meet diverse investment needs.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

SC relaxes rules for fund managers

noreply@blogger.com (admin) — Thu, 19 Feb 2009 13:59:00 +0000

TheEdge

KUALA LUMPUR: The Securities Commission (SC) is giving greater flexibility for licensed fund managers to provide innovative products, including those which incorporate alternative investment strategies.

The SC said yesterday the new “Guidelines on Wholesale Funds” were rationalised and streamlined to make it easier for fund managers to offer wholesale and retail products.

They would replace the “Guidelines on Restricted Investment Scheme” and the provisions on wholesale funds in the “Guidelines on Unit Trust Funds”.

It said the new guidelines were to enable fund managers to meet the more complex needs of sophisticated or professional investors, like high-net worth investors and institutional investors.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmInvestment Bank plans 10 funds this year

noreply@blogger.com (admin) — Thu, 12 Feb 2009 14:33:00 +0000

TheStar

KUALA LUMPUR: AmInvestment Bank Group plans to launch up to 10 funds this year, said its director (retail funds) Ng Chze How.

Currently, it has 43 unit trust funds marketed under its retail brand AmMutual and two exchange-traded funds under AmInvestment Bank Group.

“We launched eight unit trust products in 2008. Based on market demand and situation, we expect to maintain this kind of momentum this year,” Ng said at the launch of its first unit trust fund for the year, AmTriple 3O-Capital Protected.

Ng said the fund was expected to provide double-digit returns after three years.

The AmTriple is a closed-end fund linked to the best performance chosen from three dynamic indices which provide diversified exposure to three main asset classes - equity, commodity and money market.

AmTriple 3O has an authorised fund size of 200 million units.

The minimum and subsequent investment amount is RM5,000. — Bernama

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

SC approves three new foreign IFMCs

noreply@blogger.com (admin) — Sun, 01 Feb 2009 17:26:00 +0000

TheEdge

KUALA LUMPUR: The Securities Commission (SC) has given approval for three foreign Islamic fund management companies (IFMCs) to start operations in Malaysia.

The regulator said in a statement that the three are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd.

It said the three companies already have presence in the conventional asset management industry in Malaysia as part of the five licences issued under a special scheme announced in 2005 to broaden international participation in the local capital market.

SC said the three companies' interest to further expand their fund management business indicated their confidence in the Malaysian fund management industry, and reaffirmed the growing interest among international players to make Malaysia the global hub for Islamic fund and wealth management activities.

In granting the approval, SC pointed out that it had considered among other things the scope of operations that would be established by the three IFMCs in Malaysia, their fund management experience, brand value, expertise in various markets, geographical presence, and compliance and risk management capabilities.

"Despite the global slowdown, the coming on board of these three international players reflects the strong growth potential in niche areas like Islamic fund management," said SC chairman Datuk Seri Zarinah Anwar.

Meanwhile, Tokyo-based Nomura Asset Management Co Ltd president and CEO Atsushi Yoshikawa said the company planned to position Islamic fund management as one of its important strategies, adding that the establishment of Nomura Islamic Asset Management would enable it to provide a wide range of products and services to Asia and the Middle East.

"We are very pleased to be awarded a licence for Islamic fund management in Malaysia. BNP Paribas Investment Partners is firmly committed to further develop its existing Islamic investment capabilities," said Vincent Camerlynck, global head of business development and member of the executive committee of BNP Paribas Investment Partners in Paris.

Aberdeen Asset Management Sdn Bhd manging director Gerald Ambrose said: "We're delighted that our application for an Islamic fund management licence has been approved as this enables us to expand into an important new area. The domestic Islamic finance sector has been growing rapidly."

Others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Fund managers see muted recovery

noreply@blogger.com (admin) — Sun, 01 Feb 2009 17:18:00 +0000

TheStar

INVESTORS today are presented with attractive opportunities as considerable value has emerged from the downward spiral in asset values.

Many fund managers think the worst would soon be over and the markets on their way to recovery although it may be fairly muted given the severity of the losses incurred globally.

HwangDBS Investment Management Bhd chief executive officer and executive director Teng Chee Wai notes that investors may start investing again as they digest the bleak economic data in the first quarter of 2009.

“In fact, some investors have already been taking advantage of the lacklustre market to invest in equities that are now trading at relatively attractive prices,” he adds.

In 2008, every asset class – equities, bonds, commodities and properties went through a downward spiral.

Singapore’s Straits Times Index, Hong Kong’s Hang Seng and Japan’s Nikkei 225 plunged by more than 40% while crude oil was down 55% last year.

Dragged down by the equities markets, the net asset value (NAV) of the unit trust industry has dropped from RM169bil at end-2007 to RM135bil at end- November 2008. However, the 20% drop in NAV is relatively lower compared with the decline in the commodity and stock market indices.

“This is attributed to the nature of unit trusts – a collective investment scheme with reduced risks due to a diversified portfolio spread across securities, asset classes, managers and countries,” says Federation of Malaysian Unit Trust Managers (FMUTM) president Tunku Datuk Ya’acob Tunku Abdullah.

While volatility and poor economic conditions may persist in the near term, he says a well-diversified portfolio in a unit trust fund will be able to reduce risks and provide better cushion against market fluctuations.

Other industry experts observe that the general investor sentiment towards unit trusts, especially equity-based ones, will continue to be negative this year due to the crisis.

That is also due to the fact that many investors would be tightening their disposal or investible income in anticipation of a sharp economic slowdown.

However, they note that Malaysia’s banking system is still flushed with liquidity and hence, there would be appetite for investment products.

“Moreover, investors may be willing to consider investment products as we enter a phase of low interest rate environment,” HLG Unit Trust Bhd acting chief executive officer and executive director Teo Chang Seng said.

As such, the industry is expected to see more capital-protected funds being launched this year along with other low-risk fixed income products.

“In challenging times, many investors resort to the common notion that cash is king. They are also more concerned about capital preservation instead of potential yield,” says CIMB-Principal Asset Management Bhd chief executive officer J. Campbell Tupling.

Teng of HwangDBS notes that while the performance of some of its equity-based funds has been affected, its cash and money market funds have shown positive growth, year-on-year.

In view of the falling markets last year, most fund managers reported lower overall total sales and significant decrease in fund management fees as NAV of equity funds, whether local or global, declined considerably.

But on a positive note, redemptions were also considerably lower than in previous years, which is a good sign that investors are holding on rather than making panic sales.

The industry, which expects a rather quiet period this year, is stepping up its housekeeping efforts to improve internal and external efficiencies as well as enhance its delivery system.

For example, Pacific Mutual Fund Bhd is upgrading its administration and customer interface systems to achieve better connection and communication with its direct and third-party customers.

At the same time, HwangDBS is focusing on staff development and rewards to improve investors’ experience and after-sales service.

CIMB Wealth Advisors Bhd chief executive officer Tan Beng Wah says the company will continue with its plans to expand its agency force.

“At the end of 2008, we had close to 7,000 agents. We are targeting to recruit 2,500 agents this year,” he says.

According to FMUTM, it has not seen any significant number of unit trust consultants exiting the industry last year.

“For the year, it was less than 10%, which is much better than in any agency-related industry. The consultants are in for the long haul as they understand the recent market volatility is temporary,” says Ya’acob.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.