April 20, 2009

CIMB launches China fund, targets RM150m

CIMB-Principal Asset Management Sdn Bhd is targeting RM150million investments from customers for its CIMB-Principal China Recovery Structured Fund on improved economic climate in the third-largest economy in the world, said its chief executive J. Campbell Tupling.
"The stimulus plan by Chinese government has seen change in sentiments. Positive developments are visible in major sectors -- infrastructure, housing, innovation, health and education-- that would enable China to chart high growth potential," Tupling said at the launch of the fund on April 20.

The five-year close-ended fund has an approved fund size of 300 million units with an initial offer price of 50 sen per unit. Minimum investment for the fund is RM10,000. The fund, based on the CIMB-Isovol China Index, could see potential gains of 7%.

Tupling also said the fund would appeal to low risk investors as the fund offered capital protection if held to maturity.

It would also reduce investor's dilemma in terms of entry to the Chinese market as the fund would automatically select and lock-in investments at lowest entry level to enhance potential gains after a six-month observation.

The firm's chief investment officer Raymond Tang estimates China's GDP growth at 7.6% this year on stimulus spending by the Chinese government.

"Investors can expect better outlook for China this year as consensus view is the nation will be one of first economies to recover," Tupling said.

Source: TheEdge Malaysia

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