RHBAM partners JP Morgan to launch first-of-its-kind fund
KUALA LUMPUR: RHB Asset Management Sdn Bhd (RHBAM), a wholly-owned subsidiary of RHB Investment Bank Berhad, announced the launch of the RHB Global Equity Premium Income Fund, a first-of-its-kind fund in Malaysia that feeds into an actively managed exchange traded fund (ETF).
This presents investors with consistent income opportunities and appreciation potential with lower volatility, as it combines active equity investment with options overlay strategy.
The combination presents a conservative global equities exposure and aims to generate a regular and higher income stream, capturing both equity dividends and options premiums.
The fund, a wholesale feeder fund, invests in JP Morgan Asset Management’s (JPMAM) JPMorgan Global Equity Premium Income UCITS ETF, an actively managed outcomeoriented ETF strategy that invests in global equities.
“The ETFs market globally has grown by more than 25 per cent since December 2022 to reach a new record of almost US$11.5 trillion at the end of 2023.
“This makes it one of the fastest growing investment products globally,” said Mohd Fauzi Mohd Tahir, chief investment officer of equity of RHBAM.
“Investors are always looking to participate in the global equities space, with lower volatility and at the same time offering a consistent high-income stream.
“Having identified this gap, we have been searching for better investment opportunities for our customers.
“To this end, we are very excited to work with our business partner, JP Morgan, to meet Malaysian investors’ demand with this unique investment strategy,” he added.
“The RHB Global Equity Premium Income Fund offers investors an alternative to traditional income generating asset classes and potentially higher income stream, with the aim of delivering a seven to nine per cent annual income distribution, paid monthly.
“This potentially higher regular income stream is made possible with the active management of the underlying ETF. We expect to achieve RM100 million in Assets Under Management within twelve months from its launch,” said Fauzi.
RHBAM offers a full range of financial solutions spanning investment management advisory, product development and trustee services. It provides customised solutions across conventional and Shariahcompliant products to address the needs of institutional, corporate, wholesale and retail investors.