The HLG Dividend Fund was fully subscribed within seven working days of launch, buoyed by investors’ strong appetite for defensive funds.
KUALA LUMPUR – January 18 : In response to overwhelming demand to its newly-launched equity income fund, HLG Unit Trust Bhd has obtained approval to increase the fund size of the HLG Dividend Fund by 400 million units.
The HLG Dividend Fund, which was launched two weeks ago in January 6 2005, was fully subscribed within seven working days of launch, charting sales of 300 million units.
HLG Unit Trust obtained approval from Securities Commission (SC) to increase the approved fund size of HLG Dividend Fund from the current 300 million units to 700 million units as of January 13 2005.
“With the new approved fund size of additional 400 million units, we are able to cope with market demand and the strong response from our investors,“ says Richard Lin, Executive Director and Chief Executive Officer of HLG Asset Management Sdn Bhd.
“The swift take up of all our units are indicative of increased interest in defensive funds,” he added. The HLG Dividend Fund, positioned as a conservative fund offering steady recurring income, succeeded in appealing to a segment of investors seeking to invest defensively. The fund also benefited from the increased interest in equity stocks and equity funds during a period of positive market sentiment ahead of the Chinese New Year festive season.
To promote the fund, HLG Unit Trust has been organising road shows nationwide and campaigns to promote the fund, which included a series of “Feng Shui and Market Outlook 2005” seminars for investors.
“Our partners and distributors, Hong Leong Bank Berhad, HSBC Bank Malaysia Berhad, OCBC Bank Bhd and our Direct Fund Distributors, were key in the sellout success of the fund,” said Lin.
The HLG Dividend Fund is the 14th Fund in HLG Unit Trust’s portfolio of funds. Currently, HLG Unit Trust Bhd already manages a diverse product range that includes a selection of Islamic Syariah-compliant unit trusts, growth funds, equity funds, balanced funds, sectoral funds as well as bond funds.
As at 31 December 2004, HLG Unit Trust Bhd manages unit trust funds with a combined total fund size of RM 1.34 billion.
ABOUT HLG DIVIDEND FUND
The HLG Dividend Fund is an equity income fund. It is designed as a defensive fund that aims to offer investors steady recurring income. Positioned as a conservative fund, the HLG Dividend Fund also aims to offer investors with medium-to-long term capital appreciation.
To achieve the fund objective of regular income, the Fund’s strategy is to select equities with good dividend yield and potential for medium-to-long term capital appreciation. The Fund targets to provide yields that are potentially higher than fixed deposit rates.
The HLG Dividend Fund is designed for investors that are looking for a regular, stable income stream, as well as exposure to well-researched high dividend yielding securities.
The Fund invests in Malaysian-listed securities, which generate attractive dividend yield and Ringgit-denominated debts that offer attractive yields. Asset allocation of the HLG Dividend Fund will be a minimum of 70 % in listed equities, and between 0-20% in fixed income securities.
HLG Dividend Fund will be managed by external investment manager HLG Asset Management Sdn Bhd, which is also managing the existing 13 funds for HLG Unit Trust Bhd. The HLG Dividend Fund has a total approved fund size of 300 million units priced at RM 0.50 per unit during the initial offer period (from January 6 2005 till 26 January 2005). Minimum initial investment for HLG Dividend Fund is RM 1,000 while the minimum additional investment RM 100.
HLG Dividend Fund is distributed through both HLG Unit Trust Bhd’s agency force as well as Institutional Unit Trust Agents (IUTA). HLG Dividend Fund is exclusively available through only selected IUTAs namely, Hong Leong Bank Berhad, HSBC Bank Malaysia Bhd and OCBC Bank (Malaysia) Bhd.
About HLG Unit Trust Bhd
Incorporated on October 5 1994, HLG Unit Trust Bhd is an established unit trust management company, and a member of the Hong Leong Group Malaysia. Its core business is the management of unit trust funds.
Here at HLG Unit Trust Bhd, everything we do reflects our tagline “Making Opportunities Work”. Making opportunities work is central to what we do. In the world of investment, it is all about being able to spot the right opportunities and at HLG Unit Trust Bhd, we strive to make them work for our investors.
Today, the company manages 14 unit trust funds, which are distributed nationwide through multiple channels. Direct and channel distribution activities are supported by the HLG Unit Trust Bhd’s strategic nationwide sales support infrastructure. This includes our headquarters in Kuala Lumpur and six sales support offices nationwide in Kuala Lumpur, Ipoh, Penang, Johor Bahru, Kuching and Kota Kinabalu.
As at 31 December 2004, HLG Unit Trust Bhd manages 13 unit trust funds with a combined total fund size of RM 1.34 billion.