Bright outlook for unit trust industry

By Rupa DamodaranPublished: 2009/12/05

GLOBAL investment manager ING Funds Bhd is upbeat on next year's outlook for the unit trust industry, as ample liquidity in the system offers growth potential in the retail sector, said CEO Datuk Steve Ong.

ING Funds, which manages more than 20 funds, will draw more attention of the retail sector in 2010 as it looks to introduce "actively managed portfolios" added Ong.

Speaking on the sidelines of the two-day Capital Market Summit 2009 which ended yesterday, Ong said those heading towards retirement would also need someone to manage their retirement savings or face longevity risk of outliving them in three years.

The company registered a 40 per cent net growth in its funds management this year to RM3.5 billion versus last year's RM2.7 billion.

"It has been a good year for us in 2009, we have been growing very fast," he said, adding that some funds enjoyed returns as high as 30 per cent while there were some with low dividends.

On the "actively managed portfolios", Ong said fund managers will be looking after the product and the individual clients.

Through this, he said, the portfolios, managed by dedicated fund managers, will be tailored to meet the needs of individual investors, depending on their risk appetites.

"Rather than 'collecting' funds, investors, especially after last year, are looking for help in managing their funds and what positions to take."

Last year's global financial meltdown had pushed investors, in a flight to safety, to cut losses and park their money in fixed income.

The question for these investors is when to come out of the safety net.

"They will want to change the allocation when the market changes and we recognise investors are not in a position to do that," he said, explaining the thrust into actively managed funds.