Hong Leong Asset Management Bhd Launches Hong Leong Hong Kong Equity Optimizer Fund

Dated 22-09-2011

New fund set to capitalize on the thriving Hong Kong market

Kuala Lumpur, 22 September 2011 – Hong Leong Asset Management Bhd officially launched its latest fund, the Hong Leong Hong Kong Equity Optimizer Fund, at a media launch ceremony here today. This new Fund was made available to investors from 20 September 2011, with its Initial Offer Period starting 20 September 2011 and ending 10 October 2011. The Fund is designed to capture the vibrant growth of the Hong Kong capital market.

“Hong Kong is one of the world’s leading securities exchanges in the Asian region by market activity and new listings,” said Mr Geoffrey Ng, Chief Executive Officer and Executive Director of Hong Leong Asset Management Bhd.

The new Hong Leong Hong Kong Equity Optimizer Fund, being a growth fund, will invest primarily in equities and equity-related securities that are listed on the Hong Kong Exchange. The balance of the Fund’s NAV may be invested in domestic and Hong Kong fixed income securities.

“The new Hong Leong Hong Kong Equity Optimizer Fund is suitable for investors who seek medium-to-long term capital growth and income from investment opportunities in Hong Kong which continues to attract major companies from China,” Ng adds..

To achieve its investment objective, the Fund adopts an actively managed investment strategy and may invest a minimum of 70% in equities and equity-related securities that are listed in the Hong Kong market. As such, the Fund’s investments may include common stock and depositary receipts of companies, unit trusts/mutual funds, Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs). The Fund may also invest up to 30% of its NAV in fixed income securities in Malaysia and Hong Kong, which include debt securities, money market instruments and bank deposits.

“The Fund will continuously remain relevant to investors as it is designed to take advantage of the diverse strategies, securities and instruments available in Hong Kong through bull and bear markets to achieve its investment objectives,” Ng states.

Hong Kong, dubbed as Asia’s most liquid exchange, acts as a key platform in the internationalization of the Renminbi (RMB) currency. This allows investors to participate in the RMB appreciation potential via investments in equities and bonds.

“The new Fund is also a group collaboration between Hong Leong Asset Management Bhd, Hong Leong Bank Berhad and GuocoCapital Limited (GCap). Hong Leong Asset Management, the manager of the Fund, would manage the Fund’s investments in equities and fixed income securities while Hong Leong Bank is the primary distributor of the Fund,” Ng commented.

GuocoCapital Limited (GCap) has been appointed as the offshore investment advisor for the new Hong Leong Hong Kong Equity Optimizer Fund. GCap shall provide advice on the Manager’s equity and equity-related securities in the Hong Kong market. GCap is an established brokerage house with a diverse clientele, offering a full range of services, including modern delivery channels such as the Internet and the Automated Trading Hotline (IVRS). GCap is a wholly owned subsidiary of Guoco Group Limited which is a listed company on the Hong Kong Stock Exchange.

The Hong Leong Hong Kong Equity Optimizer Fund has a total approved fund size of 600 million units priced at RM 0.50 per unit during the initial offer period. The performance of the Fund is benchmarked against the Hang Seng Index. Also, the minimum initial investment amount for the new Fund has been set at RM1,000 and the minimum additional amount at RM100.

Hong Leong Asset Management also manages a variety of other funds such as Islamic Shariah-compliant unit trusts, growth funds, equity funds, balanced funds, sectoral funds as well as bond and money market funds.

Hong Leong Hong Kong Equity Optimizer Fund is distributed through both Hong Leong Asset Management Bhd’s agency force and through Hong Leong Bank Berhad.

About Hong Leong Asset Management Bhd (318717-M)

Hong Leong Asset Management Bhd is an established asset management company offering a comprehensive range of managed investment solutions across segregated assets and unit trust funds for state governments, insurance companies, endowments, family offices, corporations and high net worth individuals.

At Hong Leong Asset Management Bhd, we offer investors opportunities to participate in sophisticated investment products that open up global and local opportunities. With an extensive stable of cutting-edge investment products, we have continuously positioned ourselves to deliver innovation and superior value to our investors.

Our direct and channel distribution activities are also supported by a strategic nationwide sales support infrastructure. This includes our headquarters in Kuala Lumpur and six sales support offices nationwide in Klang Valley, Ipoh, Penang, Johor Bahru, Kuching and Kota Kinabalu.

As at 31 August 2011, Hong Leong Asset Management Bhd has a total assets under management of RM 3.04 billion.