The partnership will allow RHB Group Asset Management to tap the investor base in North Asia, as Convoy has a dominant position in Hong Kong as well as China, according to Eliza Ong, managing director of RHB OSK Group Asset Management.
Convoy AM is a subsidiary of listed independent financial adviser Convoy Financial Group in Hong Kong. The fund will be marketed exclusively by Convoy for a period of one year from the launch date of 6 October.
The RHB-OSK ASEAN Navigator aims to offer capital appreciation by investing at least 70% of its assets in equity shares of small and mid-cap companies with businesses in the ASEAN countries or those that derive at least 50% of revenue from these countries.
The fund defines small and mid-cap companies as those with market capitalisation below $1bn at the time of investment.
Companies which possess a strong balance sheet, strong operations, free cash flow, long term competitive advantage and scalable business models would be the key criteria for making investments, the firm said.
The scheme has a provision to invest up to 30% of its assets in equities of Asian companies apart from those in the ASEAN countries, or in fixed income securities, money market instruments and deposits with financial institutions.
“Combined with our strong IFA market presence, and the continuous development of personal wealth management market in Hong Kong and China, we believe this fund has a great potential to be part of the core portfolio of the majority of the investors,” Eric Ng, managing director of Convoy Asset Management said.