UOBAM targets RM100 mln AUM for United-i Global Balanced Fund

KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBAM) is targeting RM100 million in asset under management (AUM) for its newly launched United-i Global Balanced Fund in two months’ time.

Executive director/chief executive officer Lim Suet Ling said as at January 31, 2019, UOBAM has RM6.86 billion AUM and hoped to achieve its RM7 billion mark this year. She said the newly-launched fund, which is the company’s first syariah global fund, seeks to help Malaysian investors achieve stable income with lower volatility by investing in a diversified global portfolio of syariah asset classes.

“The focus stocks would be those which would grow in long term with the volatility in the market, and mostly diversified in the US, the European stocks and a few top Asian stocks as well, “she told the media at the United-i Global Balanced Fund product launch here yesterday.

Lim said the fund initial minimum investment is RM1,000 and is available in the US dollar, Australian dollar, British pound, Singapore dollar and Renminbi share classes. The fund would generally adopt a balanced portfolio between syariahcompliant equities and sukuk in the ratio 50:50, she said, adding that the sukuk portion would provide stability to the fund, while the equity portion would provide the added return in the rising market.

“Historically, the blend of this 50:50 balanced fund return was between six and nine per cent. We are targeting for a return of about seven per cent or better over the medium term for this fund,” she said.

She said the United-i Global Balanced Fund is also expected to have lower investments volatility due to its asset diversification aided by the global diversity and syariah screening.

“This ensures that only companies with low debt ratios and strong fundamentals are included for selection, providing investors with potentially lower investment risk and competitive returns,” she added. — Bernama