TheStar
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd has teamed up with JP Morgan Securities (Asia Pacific) Ltd to launch the OSK-UOB Income Alpha Fund for which they are targeting 8% to 9% in net returns yearly.
OSK-UOB chief executive director Ho Seng Yee said they hoped to attract RM200mil in investments from investors with low to medium risk tolerance.
“Malaysians are generally risk averse and in these uncertain times, some investors may be keen to diversify some of their investment into less risky asset class,” he said at the launch yesterday.
Ho said the fund was suitable for investors who wanted to preserve their capital and wanted returns that were above the prevailing inflation rate.
The inflation rate in June rose to a 26-year high of 7.7%, fuelled by the hike in petrol and diesel prices.
Ho said investors could expect income distribution from the fund semi-annually.
The fund’s main strategy is to invest 90% of its net asset value in ringgit-denominated short-term fixed income securities and the remaining 10% in derivatives in the JP Morgan Yield Alpha 8 Index with exposure in Britain, Europe, Japan, the US and the G10 countries.
The Alpha 8 Index would invest in bonds, foreign currencies and also equities.
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