Fund Management

Citi, HwangDBS Launch China-Focused Fund For Malaysian Investors

Vanessa Doctor Asia Correspondent 24 July 2011


Citigroup First Investment Management has partnered with HwangDBS Investment Management to launch a feeder fund that allows Malaysian investors to seek growth opportunities with Chinese asset management firms. 

The HwangDBS China Select Fund feeds into the China Select Fund, the target equity fund authorized by the Hong Kong Securities and Futures Commission and sub-managed by China Asset Management Co Hong Kong. 

About 10 to 30 per cent of the target fund's portfolio will have indirect exposure to China A-shares listed on the Shanghai and Shenzhen stock exchanges, and the remaining 70 to 90 per cent will be invested in China companies listed globally in Hong Kong, the US, Taiwan, and Singapore, according to a statement issued by HwangDBS.

"Our partnership with CFIM and ChinaAMC offers Citibank Berhad's high net worth investors another avenue to diversify their investment portfolio and generate growth from China. Given the the current low growth and low interest rate environments in the developed markets and the sovereign debt crisis in Europe, growth will naturally come from Asia, especially the emerging markets," said Teng Chee Wai, the chief executive and executive director of HwangDBS IM. 

The fund is exclusively distributed by Citibank Berhad during the inital offer period from 11 July 2011 and 31 July 2011. The minimum initial investment is RM30,000 ($4,700).

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