Tuesday, October 5, 2010

OSK-UOB launches first gaming fund

An interesting unit trust fund is in the process of being launched. With a specific focus on the gaming and hospitality sector, this unit trust fund has identified the gaming sector as a key growth sector given its strong revenue streams and general profitability.

KUALA LUMPUR (Oct 5, 2010): OSK-UOB Unit Trust Management Berhad has launched the first gaming and hospitality fund in the unit trust sector in Malaysia to tap into the anticipated growing demand for such investment products.

Chief executive officer Ho Seng Yee said OSK-UOB Capital Protected Asia Gaming & Hospitality Fund was introduced on the back of global economic recovery and consumer confidence.

He said the four-year close-ended capital-protected fund aims to provide regular income over a medium term period whilst protecting investors’ capital on the maturity date.

The fund’s principal strategy is to invest an indicative 87% to 90% of the capital raised in zero coupon negotiable instruments of deposits to accord the capital protection and the remainder invested in a four-year over-the-counter option.

The underlying assets of the option is a basket of companies comprising four gaming and hospitality companies’ stocks in Macau and Singapore. They are Wynn Macau Ltd, SJM Holdings Ltd, Genting Singapore PLC and Sands China Ltd.

"The option is structured to take advantage of the growth potential, vibrant and resilient gaming and hospitality sector that we believe will perform strongly and give the sought for good returns," said Ho, adding that there will be an 8% annual coupon if performance of all underlying stocks are at or greater than the initial price.

The initial approved fund size is 100 million units at RM1 each with minimum investment amount at RM1,000. The offer period will run from Oct 5, 2010 till Nov 18, 2010 and Ho is confident of the fund being fully subscribed.

Speaking at the launch of the fund, Ho said: "With the Asian economies leading in the run-up to the global economic recovery, we expect the gaming, entertainment and hospitality sector to be one of the beneficiaries positioned for growth."

He said the fund would enable investors to capitalise on the expected growth of the gaming and hospitality sector in the Asian region, particularly in Macau and Singapore.

Ho said the fund is expected to benefit from China’s rapid expansion and the increasing affluence of Chinese consumers.

"Although in its infancy stage, Singapore’s gaming industry has been positioned to take advantage of immediate demands from its neighbouring countries including Thailand, India, Indonesia and Malaysia. In addition, the Singapore authorities have also shown commitment to making Singapore a favourable destination due to the benefits to its economy and tourism sectors," said Ho.

"Hence for investors who wish to diversify or add-on to their investment portfolio some exposure to the gaming, entertainment and hospitality sector, we now offer to them this fund." — theSun