Thursday, April 10, 2014

RHBAM rolls out Islamic fund focusing on Asia Pacific’s economic growth


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MALAYSIA: Kuala Lumpur-based RHB Asset Management (RHBAM) yesterday successfully launched the RHB-OSK Islamic Regional Balanced Fund, a Shariah compliant fund that rides on the economic growth of Asia Pacific. In efforts to expand its suite of Islamic funds, the new product aims to provide regular income in the form of units earned and capital growth from a diversified portfolio of both local and foreign Shariah compliant investments.

In an emailed statement to Islamic Finance news, Ho Seng Yee, CEO of RHBAM said: “The launch of RHB-OSK Islamic Regional Balanced Fund further reinforces our strategy to position RHBAM as an outstanding ASEAN fund house offering a full spectrum of asset management products and services. Our customers will find this fund an attractive alternative to the other traditional investment options while enhancing their returns and minimizing investment risks.”

The RHB-OSK Islamic Regional Balanced Fund will invest between 40% and up to 60% of its net asset value (NAV) in Shariah compliant equities and non-equity Shariah compliant investments. To achieve optimum diversification, the fund may invest 100% of its NAV in selected foreign markets within the Asia Pacific region including China, Hong Kong, India, Indonesia, Korea, Philippines, Singapore, Taiwan, Thailand, Australia, New Zealand, and Japan. The initial issue price of the fund is set at RM1 (US$0.3) per unit, with an initial minimum investment of RM1,000 (US$307.96), during the 21-day initial offer period commencing today.

According to the statement, the fund was designed in response to the requests of Shariah compliant investors who seek for a diverse and rewarding, medium to long-term investment with a balanced portfolio. Investors participating in the fund will be afforded the opportunity to invest in Shariah compliant equity and non-equity investments. This includes Sukuk, other money market instruments and Islamic deposits with financial institutions.

In December 2013, RHB Investment Management and OSK-UOB Investment Management merged into one entity, operating under the legal entity name of RHB Asset Management. RHBAM is a fully-owned subsidiary of RHB Banking Group, the fourth-largest fully integrated financial services group in Malaysia.

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