CIMB-Principal unveils Malaysia’s first-in-market multi asset fund to invest directly into the China markets

06 July 2017

KUALA LUMPUR: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) announced the launch of its CIMB-Principal China Multi Asset Income Fund (“the fund”), the first-in-Malaysia multi asset fund to offer investors income and moderate capital growth by enabling them to invest in products such as A-shares and bonds in China’s capital markets.

Munirah Khairuddin, Chief Executive Officer of CIMB-Principal, commented, “This fund, the first of its kind in Malaysia, will enable our customers to invest in China, which is not only the second¹ largest economy in the world, but also one that is increasingly looked upon to take on the economic leadership in the upcoming rise of Asia. Given China’s economic potential, we are fairly confident of achieving RM300 million in assets under management by end 2017. The fund also reflects CIMB-Principal’s continuous effort to provide our customers with unparalleled investment opportunities across various asset classes and across numerous markets globally.”

CIMB-Principal China Multi Asset Income Fund is structured as a collective investment scheme or unit trust, and is suitable for investors with an investment horizon of at least five years. The fund invests at least 95% of its Net Asset Value (“NAV”) in the HSBC China Multi Asset Income Fund, and maintains up to 5% of its NAV in Liquid Assets for liquidity purposes. The fund is currently available to investors in MYR-Hedged and USD, with a minimum initial investment of RM10,000 or USD5,000 respectively. Investments in SGD and MYR (unhedged) will be available later this year.

HSBC Bank Malaysia Berhad is the exclusive distributor of the fund for the first 6 months from the fund’s launch.

Puneet Chaddha, Chief Executive Officer and Head, South East Asia of HSBC Global Asset Management, said, “We are pleased to collaborate with CIMB-Principal, a leading asset manager, to help their Malaysian investors seize the growth opportunities in China, a huge market with attractive growth potential across various asset classes. Through an actively managed multi-asset fund, investors can capture the opportunities in Chinese assets throughout the different phases of the economic cycles. The low correlation between Chinese assets also allows for greater diversification which strengthens the cushioning effect for a portfolio.”

¹ www.worldbank.org, March 2017