Asian Investment Manager Targets HNWs With Commodity Fund

Chris Owen

22 August 2007

Kuala Lumpur-based HwangDBS Investment Management launched what it claimed to be Malaysia's first global commodity fund, targeted at high net worth investors. The HwangDBS Global Commodity Fund (GCF), requires an initial investment of RM30,000 ($8,612) and subsequent investments of RM10,000. GCF is an open-ended fund, fed into the Schroder Alternative Solutions Commodity Fund (SASCF), which is managed by the global asset management company, Schroder Investment Management. HwangDBS IM chief executive officer Teng Chee Wai said: "GCF is the first of its kind in Malaysia that invests directly in commodity futures. Given its higher risks, the fund is not meant for the mass retail market." The firm currently has assets under management worth about RM6 billion and expects the introduction of new products will take the size of all its funds to RM7 billion for the current financial year ending 31 July 2008. Mr Teng said the group was looking at launching another two new funds by year-end and more funds next year. "We have yet to finalise the type or number of funds. We are still doing research to come out with products that will cater to investors' appetite," said Mr Teng. "The market has been very challenging for the past few weeks. We need to gauge investors’ response if the volatility of the market had hurt them or was seen as an opportunity."