OSK-UOB offers Asian real estate fund
Posted on | August 22, 2007
By THE STAR
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd expects its latest product, OSK-UOB Asian Real Estate Fund, to deliver an annualised return between 12% and 15% over the next three to five years.
Chief executive officer Ho Seng Yee said based on the group’s historical performance, investment strategy and the potential markets it would invest in, the group should be able to achieve the target.
He said the fund would be invested in Asian real estate securities and listed real estate investment trusts (REITs).
“The Asian property markets are much more attractive than in the past, as they now offer greater depth and companies with high quality management. Also, the REITs are offered tax concessions by governments,” he said after the launch of the fund Wednesday.
Ho said the fund’s investments in Asian real estates are those of REITs and of companies whose securities are listed on the Asian markets such as China, Hong Kong, Malaysia and Singapore.
“The fund will allocate 30% in REITs and 70% in property stocks. This fund is essentially an equity growth fund,” he said.
OSK-UOB Unit Trust has appointed Malayan Banking Bhd as exclusive distributor for the new fund and UOB Asset Management Ltd (Singapore) as external investment manager.
With an approved size of 800 million units, the OSK-UOB Asian Real Estate Fund is being offered at 50sen per unit during its initial offer period ending Sept 11. The initial minimum investment amount is RM1,000.
To a question, Ho said the group believed that its partner, UOB Asset Management would be able to manage the current volatility in the market.
“UOB Asset Management has 20 years’ experience in fund management. It has gone through similar volatility period and it came out very well,” he said.
UOB Asset Management managing director and chief investment officer, Thio Boon Kiat, said the market volatility, due to the US subprime mortgages woes, would remain in the short term only because the market fundamentals in the region were still in tact.
Meanwhile, Ho expects total funds under management to be around RM4bil by year-end from RM3bil now with two or three more funds to be launched.
He said with the new addition, OSK-UOB currently managed 28 funds. The company expects to launch at least two new products by year-end.
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