HLG Unit Trust Bhd proudly unveils an intelligent fund representing an advanced breed of “smart” funds that can adjust to economic ups and downs
KUALA LUMPUR – March 8 : HLG Unit Trust Bhd today officially launched its latest and most innovative fund, the HLG Strategic Fund, increasing its portfolio of product offerings to 15 unit trust funds.
During the launch ceremony, the new fund was launched by Mr. William Lean, Group Managing Director of HLG Capital Berhad and Mr. Richard Lin, Executive Director / CEO of HLG Asset Management Sdn Bhd.
The HLG Strategic Fund is a growth and income fund that belongs to a new and advanced class of funds that can be regarded as “smart” funds that can adjust to positive and negative economic cycles. Its chief distinctive feature is that the fund has built-in flexibility that supports intelligent and strategic weighting of its asset allocation between equity and fixed income assets, allowing it to adjust seamlessly in response to market dynamics.
To achieve strategic market timing, the HLG Strategic Fund is designed with maximum flexibility to make strategic changes in weightings of asset classes. There will not be any ‘floor’ or minimum weighting of a particular asset but the ‘ceiling’ maximum exposure of any particular weighting on either securities or fixed income securities (both local and foreign) is capped at 95%. The minimum weighting for liquid asset will be floored at 5%. In essence, the Fund is a dynamic fund that is able to manage its risk by positioning itself to pro-actively reflect market fundamentals, critical events and trends.
The Fund is designed to provide income on a best effort basis as well as strive for capital appreciation by actively investing in equity and equity-related securities. The Fund aims to provide investors with an investment that strives for stable returns as well as consistency in performance and income.
“The Fund’s investment strategy is carefully crafted after assessing all macro and micro fundamentals depicting both the equity and bond market outlook. As the Fund is able to react quickly to market dynamics, the investment strategy can strictly adhere to the Fund’s objective of capital appreciation and continually enhancing returns to all investors without assuming higher risk.“ said Richard Lin, Executive Director and Chief Executive Officer of HLG Asset Management Sdn. Bhd.
The Fund’s investment strategy is to invest in companies with good income potential. The Fund is also willing to invest in companies that have longer term upside (over the next 12 to 24 months as long as the upside potential is attractive). Companies with high dividend yields will also be considered.
The Fund’s performance benchmark comprises of 2 components - the KLCI and Maybank 12-month Fixed Deposit Rate, where the weighting of each component will be adjusted according to the asset weighting of the Fund at the end of its financial year.
Launching of new funds is one of the three pronged expansion strategy executed to increase HLG Unit Trust Bhd’s market share in the industry. HLG Strategic Fund is the second fund launched this year, following the recent sellout success of HLG Dividend Fund, which was launched early January 2005. To meet the growing sophistication of the market, HLG UT is planning to roll out several additional innovative unit trust products into the market.
“We are very confident that we will receive favourable response for our HLG Strategic Fund.” Said Lin. “We achieved tremendous success recently with our recently-launched sellout fund HLG Dividend Fund, where due to overwhelming demand, we increased the fund size twice to a final total of 1 billion units.” Lin said of the HLG Dividend Fund.
To promote the newly launched HLG Strategic Fund, HLG Unit Trust Bhd is organising a series of “Prospering in Wealth & Health” road shows nationwide featuring a health talk and market outlook. The speaker of the health talk is Dr. Rajbans Singh. For the market outlook portion, HLG Asset Management Sdn Bhd’s fund managers will be presenting the market outlook. The road shows also aims to be a value-added information platform for investors and customers of HLG Unit Trust Bhd.
HLG Strategic Fund will be managed by external investment manager HLG Asset Management Sdn Bhd, which is also managing the existing 14 funds for HLG Unit Trust Bhd. The HLG Strategic Fund has a total approved fund size of 500 million units priced at RM 0.50 per unit during the initial offer period (from March 8 2005 till March 28 2005). Minimum initial investment for HLG Strategic Fund is RM 1,000 while the minimum additional investment RM 100.
Available immediately, HLG Strategic Fund is distributed through both HLG Unit Trust Bhd’s agency force as well as Institutional Unit Trust Agents (IUTA). HLG Strategic Fund is available through all HLG Unit Trust Bhd’s existing IUTAs namely, CIMB Private Banking, Hong Leong Bank Berhad, HSBC Bank Malaysia Bhd, OCBC Bank (Malaysia) Bhd and Standard Chartered Bank Malaysia 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.
Here at HLG Unit Trust Bhd, everything we do reflects our tagline “Making Opportunities Work”. Making opportunities work is central to what we do. In the world of investment, it is all about being able to spot the right opportunities and at HLG Unit Trust Bhd, we strive to make them work for our investors.
Today, the company manages 15 unit trust funds, 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 February 28 2005, HLG Unit Trust Bhd manages 14 unit trust funds with a combined total fund size of RM 1.72 billion. #