The move is part of plan to boost presence in Hong Kong with Islamic funds eyed in follow-through activities.
OSK Hong Kong International Investment Ltd (OSKIIHKL), a subsidiary of OSK Investment Bank Bhd, one of Malaysia's leading investment services firms, on Tuesday announced the launch of its inaugural OSK Resources Fund ("OSK Resources Fund") as part of a broad ranging programme to boost its presence in the Hong Kong market.
William Wu, Executive Director and Chief Executive Officer of OSK Holdings Hong Kong Limited (OSKHHK) said, "The OSK Resources Fund is the first fund launched by OSK International Investments Hong Kong. Going forward, we intend to build the OSKIIHKL presence in the asset management market in this region, embarking with the launch of this fund, followed by Islamic funds in the pipeline, which have a niche market target in Hong Kong. We may also promote these funds in Middle East countries, with a view to building the Islamic Capital Market in Hong Kong."
The OSK Resources Fund aims to invest at least 70% in equity and equity-related securities issued by companies whose businesses are in or are substantially related to the natural resources sectors such as but not limited to plantations (e.g. palm oil, rubber, timber), oil and gas including, without limitation, those involved in both upstream and downstream businesses.
"This Fund has been structured with the aim to achieve long term capital appreciation through investments in securities of companies whose businesses are in or are substantially related to the natural resources sectors," said Alfred Lim, Managing Director of OSK International Investments Hong Kong, "There is increasing demand for resources due to rapid urbanisation in Asia, especially with infrastructure development."
"The OSK Resources Fund suits investors who wish to capitalise on the opportunities offered by the natural resources sectors, seek a well-diversified investment across the Asia Pacific markets, and are willing to accept moderate to high risk in their investments as well as preferring capital growth rather than income over a long term period," added Lim.
"The strategy for this fund is aimed at maintaining an equity exposure of 70-98%, adopting a top down approach through countries and sectors and a bottom up analysis of upstream and downstream industries. Eventually, over a 2-3 year horizon, we believe that investments in commodities offer a good risk-reward profile," said Lim.
"OSKIIHKL has appointed OSK-UOB Investment Management Berhad (formerly known as OSK-UOB Unit Trust Management Berhad) ("OSK-UOB") as investment adviser to its Fund. OSK-UOB is a 70:30 joint-venture company between the OSK Group in Malaysia and UOB Group in Singapore, according to an OSK report.
The OSK Group Asset Management currently manages more than 67 funds as well as a number of discretionary and non-discretionary mandates in excess of USD2.7 billion and has a presence in four countries and is supported by more than 155 employees and 35 fund managers. The UOB Asset Management Group established in 1996, is one of the most awarded fund houses in Singapore, winning a staggering 116 awards since inception. Supported by 70 investment professionals, the Group has a presence in five countries with about USD35 billion in assets under management," said Mr Ho Seng Yee, Chief Executive Officer, OSK-UOB.
"The OSK Resources Fund shares a similar investment mandate and strategy as that of the OSK-UOB Resources Fund launched in year 2006 in Malaysia by OSK-UOB. The OSK Resources Fund seeks to mirror the success of the Malaysian fund which has approximately USD120 million assets under management. The Malaysian fund is widely distributed by the agents and 20 bank distributors across Malaysia. We expect the same kind of success to be achieved in Hong Kong with the newly launched OSK Resources Fund," added Mr. Ho.
The OSK Resources Fund will be offered to the investing public at an initial price of USD10 (approximately HKD78) per unit, with the initial minimum investment amount being USD1,000 (approximately HKD7,800) and a minimum additional investment of USD100 (approximately HKD780). The initial offer period is from 30 August to 16 September 2011. This Fund will be launched on 19 September 2011.
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