There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
The two indices that the new fund will be tracking are Hong KongÆs Hang Seng China Enterprises Index and the Nasdaq-100 Index. While the latter includes comprises of 100 of the largest non-financial institutions listed on the Nasdaq exchange, as measured by market capitalisation, the over-the-counter (OTC) options will provide Malaysian investors with exposure to Chinese companies that are listed in Hong Kong.
According to OSK-UOB Unit Trust, the performance of the OTC options will be derived from the volatility of the indices. In other words, the greater the volatility in these two indices, the better the likely returns for investors.
The fundÆs marketers will target a fairly niche sector of MalaysiaÆs investment community. Firstly, the firm believes the Index Covered Fund will gel with investors that are able to take some form of risk and accept partial capital protection. It also believes it will strike a chord with Malaysians that wish to participate in the potential upside of a structured investment that is linked to the volatility of the two indices and those with a relatively short-term investment horizon.
The new fund, which was officially launched on 19 June, will be open for investment for one month. Fees have been capped by the firm at 1.5% of the funds total net asset value (NAV) and the minimum initial investment is set at RM10,000 (approximately $2,900).
The OSK-UOB Index Covered Fund is the latest launch in 2007 of the JV asset management. In May, the firm rolled out its OSK-UOB Golden Dragon Fund, which invests in companies in Greater China.
Investors can still find spread premiums in niche private debt, with the asset class's prognosis looking strong, said a keynote speaker at AsianInvestor’s latest summit on Wednesday.
AsianInvestor details the second part of our marquee award winners for 2021, which includes the standout ESG adviser and also the asset manager of the year.
AsianInvestor reveals the first half of our marquee winners for this year's Asset Management awards, including best asset service provider and top alternative fund houses.
The number of millionaires in mainland China grew by 35% in 2020, while the number of millionaires in Hong Kong fell by 7%, according to a new report from the private bank.