KUALA LUMPUR: CIMB-Principal Asset Management Bhd targets to increase its total assets under management to RM26bil by year-end from RM19bil last year, said chief executive Datuk Noripah Kamso.

“We are targeting a growth of 36%,” she said yesterday after the launch of the CIMB Islamic Global Equity Fund, its first syariah-compliant fund.

According to Noripah, CIMB-Principal will launch about 20 conventional and syariah-compliant funds this year to achieve its target.

Raymond Tang (left) and Datuk Noripah Kamso

“We will be issuing 11 funds from our KL office and the balance from our Jakarta office,” she said.

CIMB-Principal has over 60 funds currently.

Chief investment officer Raymond Tang expected returns in excess of 15% per annum within 18 to 24 months for the new fund.

Noripah said the fund would invest in equities in both emerging and developed markets.

“The fund would offer investors a balance that gives investment access to emerging markets and provide them with long-term stability from the strong fundamentals of developed markets,” she said.

The fund will invest 70% to 99% of its net asset value in syariah-compliant equities listed on the stock exchanges in Asia-Pacific, Europe, North and Latin America, she added.

“The fund's broad diversification across these countries would reduce volatility significantly,” she said.

According to Tang, the fund would invest in world-renowned companies such as ExxonMobil, Microsoft, Cisco Systems and Vodafone. Tang assured that not all US-based stocks were severely affected by the subprime and credit crunch issues currently plaguing the US economy.

“Not all equities in the US are doing badly. Companies like Google and Apple recorded 60% to 70% in returns per annum in 2007. There are stocks that still do well despite the issues in the US,” he said.

Principal Global Investors (PGI), a diversified asset management organisation and a member of US-based Principal Financial Group, will manage the fund. PGI is also a shareholder of CIMB.

PGI managed US$306bil in assets as at Sept 30, 2007.

The CIMB Islamic Global Equity Fund has an approved size of 300 million units. The initial selling price per unit is 50 sen with a minimum investment of RM1,000.

Source : The Star, Wednesday January 9, 2008.
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