UOB Asset Management (UOB AM) in Malaysia has launched the United UWealth Pop Fund (UUWPF), a multi-asset solution that invests in a diversified portfolio of equities and fixed income, according to a statement from the firm.
The fund seeks to provide annual income dividends and capital appreciation over a medium- to long-term horizon. It is a fund of funds strategy, investing at least 80% of its assets into equity and fixed income funds that are managed in-house, as well as US-listed exchange-traded funds (ETFs), the firm said.
The portfolio will make use of UOB AM’s robo-advisory algorithm, which integrates the firm’s proprietary capital market assumptions. The assumptions are derived from the firm’s in-house research and used as model inputs in generating the investment portfolios. These include expected return forecasts, volatility estimates and matrix of asset class correlation assumption.
Through the algorithm, portfolio managers will optimise UUWPF’s investments with an efficient allocation across sectors and geographies, such as the US, Europe and Asia, including Japan and Malaysia, the statement said. The investments within the portfolio chosen are liquid, well-diversified and have low fees to maximise returns for retail investors.
“By combining our robo-advisory technology with periodic rebalancing by our portfolio managers, we can ensure efficient management of the UUWPF, one that is aligned with market movements,” Lim Suet Ling, UOB AM’s Malaysia CEO, said in the statement.
“This way, the investment portfolio will provide steady income streams and potential capital gains, while remaining resilient even in times of market volatility,” she added.
The fund was created in collaboration with UOB Kay Hian, which will be the exclusive distributor of the product, according to the statement. Singapore-headquartered UOB Kay Hian is a brokerage firm backed by the UOB Group and has offices across Southeast Asia, Greater China, the UK and North America.
“Our platform consists of diversified wealth management solutions with a full range of products such as unit trusts, private retirement schemes, fixed income, bonds and structured products,” Alvin Tan, CEO of UOB Kay Hian Wealth Advisors, said in the statement.
“The partnership with UOB AM Malaysia supports our objective to become a leading independent wealth advisory firm in Asia,” he said.
