KUALA LUMPUR (March 30): United Overseas Bank (UOB) Asset Management (Malaysia) Bhd has launched its multi-asset solution United UWealth Pop Fund (UUWPF).
During its virtual launch cum press conference today, UOB Asset Management chief executive officer Lim Suet Ling explained that the fund invests in a diversified portfolio of equity and fixed-income funds, and exchange-traded funds (ETFs).
She explained that the new product is suitable for retail investors with a moderate risk profile and that it seeks to provide annual income dividends and capital appreciation over the medium to long term.
The new fund uses a fund-of-funds strategy.
It will be investing at least 80% of its net asset value (NAV) into equity and fixed-income funds and ETFs, rather than directly investing into securities such as stocks and bonds.
The remainder will be invested into liquid assets such as money market instruments and deposits.
The asset management firm’s portfolio managers use its robo-advisory algorithm to help optimise UUPWF’s investments with an efficient allocation across different sectors in different markets such as the US, Europe and Asia (including Japan and Malaysia).
It was explained that the investments within the portfolio are liquid, well-diversified and have low fees to maximise returns for retail investors.
This new fund is available in ringgit, with an initial minimum investment of RM1,000.
“To drive economic recovery and to keep it on a safe trajectory, central banks globally are expected to maintain their ultra-easy monetary policies and are unlikely to increase interest rates. By investing in a diversified multi-asset portfolio, retail investors can benefit from the yield of fixed income assets and the potential for capital returns on equities.
“By combining our robo-advisory technology with periodic rebalancing by our portfolio managers, we can ensure efficient management of the UUWPF, one that is aligned with market movements. This way, the investment portfolio will provide steady income streams and potential capital gains, while remaining resilient even in times of market volatility,” said Lim.
During her presentation, Lim added that UOB Asset Management will soon be launching its Jazz fund (for more conservative investors) and Rock fund (for more aggressive investors).
The UUWPF will be exclusively distributed by UOB Kay Hian.
When asked how many potential investors are expected to be onboarded for the fund, UOB Kay Hian Wealth Advisors chief executive officer Alvin Tan said that it does not have a limit, noting that this is an open-ended fund.
“We also want to make it as general as possible to the public as well. The investment sum is as low as RM1,000. We also have a regular savings plan for investors with minimum of RM100,” Tan noted.
Upon its launch, a target of RM30 million for assets under management (AUM) has been set.
