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Malaysias OSK launches HK fund, eyes Islamic funds

A subsidiary of a major Malaysian asset manager, OSK, is launching a resources fund in Hong Kong.

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It is the first fund to be unveiled by the Hong Kong arm of OSK Investment Bank Bhd, according to William Wu, executive director and CEO of OSK Holdings Hong Kong, who said it would soon be followed by Islamic funds that he said were already in the pipeline, and which “have a niche target market in Hong Kong”.

“We may also promote these funds in Middle East countries, with a view to building the Islamic capital market in Hong Kong," Wu added.

Malaysia is one of the world’s leading centres for Islamic financial products, particularly sukuk, or Islamic bonds.

The resource fund’s initial offering period began yesterday and continues until 16 Sept, after which it is scheduled to formally launch on 19 Sept. The minimum investment is $1,000, with an initial charge of up to 5% of the investment amount and the annual management fee of “% per annum.
  
The OSK Resources Fund aims to invest at least 70% in equity and equity-related securities issued by companies whose businesses are in, or are substantially related to, the natural resources sectors, such as palm oil, rubber and timber plantations, as well as such sectors as oil- and gas-extraction-related businesses, OSK said.

OSKIIHKL said it had named OSK-UOB Investment Management Berhad – a 70/30 joint-venture company between the OSK Group in Malaysia and UOB Group in Singapore – as investment adviser to the fund.

OSK Group Asset Management currently manages more than 67 funds as well as a number of discretionary and non-discretionary mandates.

Similar strategy

The OSK Resources Fund was described by OSK as sharing “a similar investment mandate and strategy” with that of another OSK fund, known as the  OSK-UOB Resources Fund, which began trading in 2006 in Malaysia and now has approximately $120m in assets under management.

“The OSK Resources Fund seeks to mirror” that fund’s success, OSK-UOB Investment Management Berhad CEO Ho Seng Yee said.

IA Fund Fact Box
Fund Name: OSK Resources Fund
Domicile: Hong Kong
Minimum investment: US$1,000
Launch date: 19 Sept 2011
Dividend policy: reinvested

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