HLG Unit Trust Launches HLG Global Value Fund

Dated 03-01-2008


New fund focuses on undervalued global equity securities


Kuala Lumpur, 3 January 2008 - HLG Unit Trust Bhd (HLG UT) today officially launched its latest fund, the HLG Global Value Fund. The Fund will invest predominantly into a diversified portfolio of global equity securities that are considered to be undervalued, using a fundamental value.

HLG Global Value Fund is an equity growth fund that would strive to generate attractive capital appreciation from a portfolio of well-established companies that are considered to be undervalued. ‘Undervalued’ is best defined as an asset or stock being priced at a moment in time significantly below what it is actually worth.

The HLG Global Value Fund is designed for investors who are seeking long-term positive capital appreciation through exposure into undervalued equities. The Fund is also suitable for investors who are seeking greater diversification in their investments through global exposure.

“As the Fund aims to maximise consistent and long-term capital growth, the Fund would invest into securities that are considered to be undervalued because they are attractively priced relative to their future earnings power,” said Richard Lin, Executive Director and CEO of HLG Asset Management Sdn Bhd.

The investment management of the HLG Global Value Fund has been delegated to Delaware Capital Management (DEL), the designated external foreign investment manager. Delaware Capital Management has provided quality investment services to the high net worth and institutional investor markets since 1994. The Fund would be able to leverage on Delaware Capital Management’s experience and in-depth knowledge of value investments that is central to the Fund. As of 30 June 2007, Delaware Capital Management has more than US$17.2 billion in assets under management.

The Fund will invest predominantly in a diversified portfolio of equity securities of companies from a wide range of industries with original listings in both developed and emerging markets countries worldwide. These are companies that are determined to be undervalued. In selecting securities for the Fund’s portfolio, fundamental research is used to identify companies whose long-term earnings power is not reflected in the current market price of their securities.

The asset allocation for the HLG Global Value Fund would be a minimum of 70% in global equity securities and a maximum of 30% in fixed income investments. The performance of the Fund is benchmarked against MSCI EAFE (Morgan Stanley Capital International Europe Australia Far East Index).

The new fund will play an important role in positioning HLG Unit Trust Bhd as among the major unit trust players in the industry. The inclusion of the HLG Global Value Fund increases HLG Unit Trust’s portfolio of managed funds to 26. Other funds currently managed are from a diverse range of products that include a selection of Islamic Shariah-compliant unit trusts, growth funds, equity funds, balanced funds, sectoral funds as well as bond funds.

The HLG Global Value Fund has a total approved fund size of 600 million units priced at RM 0.50 per unit during the initial offer period (from 3 January 2008 till 23 January 2008). Minimum initial investment for HLG Global Value Fund is RM 1,000 while the minimum additional investment is RM 100.

HLG Global Value Fund is distributed through both HLG Unit Trust Bhd’s agency force and through selected Institutional Unit Trust Advisers (IUTA) namely, Hong Leong Bank Berhad, HSBC Bank Malaysia Berhad, Standard Chartered Bank Malaysia Berhad and ABN Amro Bank Berhad.

About HLG Unit Trust Bhd

Incorporated on October 5 1994, HLG Unit Trust Bhd is an established unit trust management company, and a member of the Hong Leong Group Malaysia. Its core business is the management of unit trust funds.

The company already manages 26 (including the new fund launched today) unit trust funds to date, which are distributed nationwide through multiple channels. Direct and channel distribution activities are supported by the HLG Unit Trust Bhd’s strategic nationwide sales support infrastructure. This includes our headquarters in Kuala Lumpur and six sales support offices nationwide in Kuala Lumpur, Ipoh, Penang, Johor Bahru, Kuching and Kota Kinabalu.

As at 27 December 2007, HLG Unit Trust Bhd has a combined total fund size of RM 2.23 billion.