One of the largest asset managers in Malaysia has launched a fund taking advantage of cross-border passporting arrangements.

CIMB Principal Asset Management, the Malaysia-based firm, has launched a fund that it says is the first to take advantage of a cross-border funds passport regime.

The firm has rolled out the CIMB-Principal ASEAN Total Return Fund, making use of the ASEAN Qualifying Collective Investment Scheme that now operates in Malaysia (referring to countries in the Association of Southeast Asian Nations: Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Myanmar, Singapore, Vietnam, Thailand). The regime makes it easier for investors in ASEAN member states to buy and sell funds across national borders.

The fund seeks capital growth over the medium to long term, with a target return of 9 per cent.

The fund is offered for subscription in the Malaysian ringgit and the dollar at RM0.50 and $0.50 per unit respectively, for the 21-day initial offer period from 3 March to 23 March 2015. The minimum initial investment is RM500 or $200. Investors can purchase the fund from CWA; it will shortly be available from other participating banks. HSBC (Malaysia) Trustee Berhad has been appointed as the fund’s trustee.

To date, CIMB-Principal has a total of 70 unit trust funds (19 of which are Shariah-compliant), 15 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds. 

“As one economy, ASEAN would be the seventh largest in the world with a combined gross domestic product of $2.5 trillion. It is expected to grow by an annual average of 5.6 per cent for the next five years. We firmly believe the CIMB-Principal ASEAN Total Return Fund will enable investors to benefit from the economic strength in the ASEAN region, which is expected to grow at a faster rate compared to major developed nations,” Munirah Khairuddin, chief executive officer of CIMB-Principal, said in a statement.