HLG Unit Trust Bhd proudly unveils its first equity income fund, the HLG Dividend Fund
KUALA LUMPUR - Jan 6 : HLG Unit Trust Bhd officially launched the HLG Dividend Fund today, increasing its existing portfolio of product offerings to 14 unit trust funds.
During the launch ceremony, the new fund was unveiled by Mr. William Lean, CEO of HLG Capital Berhad and Mr. Richard Lin, Executive Director and CEO of HLG Asset Management Sdn Bhd.
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 relatively low-risk 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,” says Richard Lin, Executive Director and Chief Executive Officer of HLG Asset Management Sdn. Bhd.
“The Fund invests in defensive stocks which have sustainable and sound dividend payout policies and reasonable medium-to-long term capital appreciation opportunities. The defensive stocks offers lower volatility while the high dividend yielding stocks offer stable gains. Hence, HLG Dividend Fund is an investment avenue for those who prefer regular income stream, stable investment returns and potential for medium-to-long term capital appreciation,” says Richard Lin.
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.
The new fund will play an important role in positioning HLG Unit Trust Bhd in its strategy to be among the largest unit trust companies in the industry. 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.
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.
“Regular fund launches are part of the multi-pronged expansion strategy we have embarked upon to expand our market presence. We are very confident that our HLG Dividend Fund will receive favourable response from our investors,” said Lin.
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.
To meet the growing sophistication of the market, HLG UT is planning to roll out several additional innovative unit trust products into the market. The new products in the pipeline will be launched this year.
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 December 31 2004, HLG Unit Trust Bhd manages 13 unit trust funds with a combined total fund size of RM 1.43 billion. #