Tuesday April 27, 2010
MIDF to convert bond funds to money market funds
KUCHING: MIDF Amanah Asset Management Bhd has set its sights on converting two of its bond funds into money market funds before year-end, says chief executive officer and chief investment officer Scott Lim.
He said the bond funds — MIDF Amanah Bond Fund and MIDF Amanah Islamic Bond Fund — were not suitable to be managed as such due to the small size.
“The funds are too small to be managed as bonds as each fund’s size is only about two million units. That’s why we are converting them into money market funds,” he told reporters on the sidelines of the Malaysia Unit Trust Week 2010 (MSAM 2010).
MIDF Amanah, the asset management arm of Malaysian Industrial Development Finance Bhd (MIDF), acquired Asia Unit Trust Bhd (AUTB) last year.
AUTB was formerly the MIDF Group’s unit trust management division.
With the transfer of business completed at the beginning of this year, the company has merged its businesses under a single licence, known as MIDF Amanah.
Lim said the company had successfully rebranded its four funds — the MIDF Amanah Growth Fund, MIDF Amanah Strategy Fund, MIDF Amanah Islamic Fund and MIDF Amanah Dynamic Fund — recently. All were previously managed by AUTB.
All six funds were re-launched on the first day of the MSAM 2010 to take advantage of the event and to promote them in the local market. “This year’s focus will be more on the four funds, rather than our bond funds.
“To generate interest among investors for these products, we are also offering a zero sales charge until year-end,” he explained.
He also highlighted that the funds were expected to give a more than 100% return in the long term (three to five years).
“Our track record has been in giving a minimum 300% return for a 10-year investment and about a 200% return for a five-year investment,” he noted.
MIDF Amanah also plans to launch a foreign fund in the second half of this year. — Bernama