RHB Unit Trust Launches DIVA Fund to Invest in Asian Markets

KUALA LUMPUR, July 21, 2005: Investors who want to take advantage of the robust growth across Asia now have a new fund to add to their portfolio – the RHB Dividend Valued Equity Fund (“DIVA Fund”).

The new fund by RHB Unit Trust Management Bhd (“RHB Unit Trust”) will have 70% of its NAV (net asset value) invested in various parts of Asia to ensure consistent income as well as capital appreciation for its investors.

The main objective of the fund is to provide total returns primarily through investment in equity and equity-related securities of companies that offer attractive yields and sustainable dividend payments, according to the Chief Executive Officer of RHB Unit Trust, Mr Michael Tan.

“The strategy is to invest in companies that offer higher expected dividend yields compared to other companies in the markets that we invest in, and whose cash flow generated by business and management activities are expected to support such dividend payments,” he added.

Sale of the units began on July 13, while the fund was officially launched by Executive Chairman of the RHB Group, Dato Sri Sulaiman Abdul Rahman Taib today.

RHB Unit Trust also signed a new distributorship agreement with United Overseas Bank (M) Bhd (“UOB Bank”), making it the newest member of the RHB Unit Trust panel of distributors.

The DIVA Fund is the first new fund to have a major portion of its NAV to be invested outside Malaysia since the liberalisation of foreign exchange controls by Bank Negara Malaysia earlier this year.

With the lifting of the controls, unit trust companies may now invest up to 30% of their individual NAVs abroad, subject to approval by the central bank.

The NAV of RHB Unit Trust stood at RM1.5 billion as at June 30, 2005, thus enabling RHB Unit Trust to invest up to RM450 million of its funds in foreign markets.

Mr Tan said the initial size of the DIVA Fund had been fixed at 500 million units of 50 sen each, adding up to a total of RM250 million. At 70%, a minimum of RM175 million can be invested overseas,” he said.

However, he also pointed out that the DIVA Fund was an open-ended fund, thus enabling RHB Unit Trust to enlarge it once all 500 million units have been sold out. “We can certainly enlarge the fund, depending on the response from investors,” he added.

Tan said RHB Unit Trust would be looking at investing in Asia, excluding Japan, particularly in emerging markets such as China, India, the Philippines, Indonesia and South Korea.

The DIVA Fund will be managed by UOB-OSK Asset Management Sdn Bhd, a subsidiary of UOB Asset Management of Singapore. “The fund manager already has wide experience managing funds across Asian markets, and we are confident that investors will benefit greatly from the expertise of the fund manager,” Mr Tan said.

He said the DIVA Fund would be suitable for investors who were prepared to accept moderate risks but wanted a steady and consistent dividend payout as well as long-term capital growth.

“With the DIVA Fund, they will not only enjoy international exposure and diversification, but they will also get a steady and consistent income as well as high potential for capital growth,” he added.

With the launch of the DIVA Fund, RHB Unit Trust now manages 16 different funds. Its ISO certification was upgraded from the ISO 9002: 1994 to ISO 9001: 2000 in March 2003. This certification from ISO signifies RHB Unit Trust’s commitment to continually improve the quality of service to its customers. The RHB DIVA Fund is distributed via RHB Bank, RHB Securities, UOB Bank and its authorised agents.

For more information, please contact RHB Unit Trust Management Berhad at toll free 1-800-88-3656 or visit our website at www.rhb-unittrust.com.my .