RHB Asset Management (RHBAM), a wholly-owned subsidiary of RHB Investment Bank, today announced the launch of the RHB Global Equity Premium Income Fund.
The fund, a wholesale feeder fund, invests in J.P. Morgan Asset Management’s (JPMAM) JPMorgan Global Equity Premium Income Ucits ETF (Target Fund, ticker: JEPG), an actively managed outcome-oriented ETF strategy that invests in global equities.
It is a first-of-its-kind fund in Malaysia that feeds into an actively managed exchange traded fund (ETF), designed to present investors with consistent income opportunities and capital appreciation potential with lower volatility, as it combines active equity investment with options overlay strategy.
The combination provides a conservative global equities exposure and aims to generate a regular and higher income stream, capturing both equity dividends and options premiums.
The ETFs market globally has grown by more than 25% since December 2022 to reach a new record of almost $11.5trn at the end of 2023, according to a recent PwC report.
“This makes it one of the fastest growing investment products globally,” said Mohd Fauzi Bin Mohd Tahir, chief investment officer of equity, RHB Asset Management.
The fund offers investors an alternative to traditional income generating asset classes and potentially higher income stream, with the aim of delivering a 7% – 9% annual income distribution, paid monthly.
“This potentially higher regular income stream is made possible with the active management of the underlying ETF. We expect to achieve RM100m ($21m) in AUM within twelve months from its launch,” said Fauzi.
Supreet Bhan, head of Southeast Asia funds, J.P. Morgan Asset Management, said: “As one of the world’s largest managers of active ETFs by AUM, we are excited to introduce one of our market-leading active ETF strategies in a feeder fund format to Malaysian investors, in partnership with RHBAM.”
“Combining equities with options overlay, this strategy aims to strike a balance between yield, capital growth, and risk to meet investors’ growing demand for diversified income sources without taking on undue risk.”
Subscription to the fund is open to sophisticated investors only.
RHBAM offers a range of financial solutions spanning investment management advisory, product development and trustee services, across conventional and Shariah-compliant products to address the needs of institutional, corporate, wholesale and retail investors.
