CIMB-Principal targets RM300m AUM by year-end with China fund

KUALA LUMPUR: CIMB-Principal Asset Management Bhd aims to achieve RM300 million in assets under management (AUM) by the end of the year, through its newly launched CIMB-Principal China Multi Asset Income Fund.

“This fund, the first of its kind in Malaysia, will enable our customers to invest in China, which is not only the second largest economy in the world, but also one that is increasingly looked upon to take on the economic leadership in the upcoming rise of Asia,” CIMBPrincipal CEO Munirah Khairuddin said in a statement.

The multi-asset fund, will enable investors to invest in products such as A-shares and bonds in China’s capital markets.

The fund which is structured as a collective investment scheme or unit trust will invest 95% of the net asset value (NAV) of the fund into HSBC China Multi Asset Income Fund, while maintaining up to 5% of its NAV in liquid assets for liquidity purposes.

HSBC Bank Malaysia Bhd is the exclusive distributor of the fund for the first six months.

The fund, which has an investment horizon of five years, is available for investors with a minimum initial investment of RM10,000 or US$5,000.

Currently it is available for ringgit-hedged investments and US dollars, while investments in Singapore dollars and unhedged ringgit will be made available later this year.

“Through an actively managed multi-asset fund, investors can capture the opportunities in Chinese assets throughout the different phases of the economic cycles. The low correlation between Chinese assets also allows for greater diversification which strengthens the cushioning effect for a portfolio,” said HSBC Global Asset Management CEO Puneet Chaddha.