OSK-UOB introduces Asian Recovery Fund

KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd, a subsidiary of OSK Investment Bank Bhd, has launched a new OSK-UOB Asian Recovery Fund, to take advantage of investment opportunities in the recovering Asian economy.

In a statement on Wednesday, April 28, its CEO Ho Seng Yee said the fund would be invested into 15 Asian blue-chip companies under a two-year maturity period, with a potential yield return of 50% to 70%.

"The growth fund is set to capitalise on the Asian recovery through the performance of a basket of Asian companies' equity securities that is expected to perform strongly during the recovery phase of the Asian economy," he said.

Ho said OSK-UOB would hand pick the 15 stocks that represented market leaders in their respective sectors and industries, but were undervalued in the current economic climate.

"With these 15 stocks hand-picked and fixed in the portfolio, investors would have the comfort of knowing exactly what they have invested into. Moreover investors will benefit from the diversification of these 15 stocks in different countries and sectors," he said.

"This strategy is considered to be the most effective to achieve the fund's objective which aims to provide investors with short term capital appreciation within a time frame of two years."

Ho said reports had shown that Asian economies would recover before its US and European counterparts, and this was reflected in the better cash positions of banks and companies in Asia. "The Asian economies are also well-supported by domestic demands as its consumers have the money to spend," he added.

The new fund, distributed solely by United Overseas Bank (M) Bhd, has an initial approved fund size of 120 million units, and is offered to the public at RM1 per unit. The initial investment amount is RM10,000, and the subsequent minimum top-up is RM1,000. The offer period is from April 27 to May 26, 2010.