Maybank Asset Management launches first feeder fund for exposure in Asian small-cap stocks

KUALA LUMPUR: Maybank Asset Management Group Bhd (MAMG), which today launched the MAMG Asia Rising Stars Fund, said investors should look at investing in Asian small-capitalisation companies to benefit from the region’s growth prospects.
MAMG with the US-based investment manager BNY Mellon Investment Management jointly launched the fund, which is its first feeder fund to offer retail investors access to Asian small-cap stocks.
Speaking at the launch ceremony, MAMG CEO Badrul Hisyam Abu Bakar said the asset management firm remains positive on the outlook for small cap stocks in Asia as the region is benefitting from robust growth rates, as well as structural reforms and a cyclical upturn in Japan.
Badrul noted that due to the large number of stocks and very limited sell side research coverage, there is more information inefficiency and mispricing in the small-cap equities asset class.
“This gives bottom up stock pickers like ourselves and BNY Mellon Japan the opportunity to take advantage of this mispricing and potentially generate healthy returns for investors.
“Together (with BNY Melon) we can unlock the greater potential of the fund by offering our investors a diversified exposure to both Japan and Asia ex-Japan, which is unique in the market,” he added.
The feeder fund will invest a minimum of 95% of the fund’s net asset value in a target fund called BNY Mellon Asia Rising Stars Fund, a sub fund of the BNY Mellon Global Funds, managed by BNY Mellon Asset Management Japan Ltd.
Launched in January 2017, the target fund focuses on companies with a market capitalisation below US$5 billion (RM20.8 billion) and seeks to provide capital growth by investing in Asian small cap companies that are listed on Asian exchanges, including Japan.
Since the inception of the target fund last year, the cumulative return is 27%, with its asset under management stood at US$15 million as of date.
The fund is designed for retail investors who seek to maximise investment returns and willing to tolerate risk associated with Asia small cap equities and have a long term investment horizon.
These investors can access the fund at Maybank branches nationwide, with a minimum initial investment of RM1,000 and subsequent additional investments of at least RM100.
The investment plan is also available in other currency classes, namely Singapore dollar, US dollar, Australian dollar as well as euro.