KUALA LUMPUR (April 1): UOB Asset Management (Malaysia) Bhd (UOBAM) aims to achieve 20% to 30% growth in asset under management (AUM) in 2015, driven by launches of new products every six weeks.

As at January 31, UOBAM's AUM stood at RM5.16 billion.

UOBAM CEO Lim Suet Ling said the group would be launching more funds under its own brand, aiming for at least one product every six weeks.

"Previously we had a tie-up with OSK, so we were the manager for the OSK-related funds. Going forward, we will launch funds under UOBAM.

"We do expect to have something new every six weeks, something that is new to the market, to provide more choices for investors," said Lim at a press conference today.

Its first product for 2015, the United Target Income Bond Fund,launched on March 16, aims to provide retail investors with an annual income stream from Asian bond markets.

The new fund is a three-year, close-ended bond fund that invests in a diverse portfolio of Asian sovereign, quasi-sovereign and corporate bonds, including issuances from Malayan Banking Bhd, China's Country Garden, Indonesia's Vedanta Resources and Thailand's Siam Commercial Bank.

"The minimum investment for this fund is only RM5,000, which is affordable for the man on the street. It can be considered as another form of savings," Lim said, adding that the fund's portfolio is well-diversified, with 75% comprising investment grade bonds.

The fund house keeps a positive outlook on Asian bonds, especially from China, India and Indonesia, as Lim foresees a benign interest rate environment as many central banks in Asia have implemented loose monetary policies.

"In addition, quantitative easing measures in Europe as well as the shrinking supply of bonds from other markets are likely to boost the demand for Asian bonds," she said.

On the anticipated hike in interest rates by the US Federal Reserve, UOB Asset Management Ltd senior director Chia Tse Chern said the fund house expects a base case hike of 25 basis points this year.

"The UOBAM house view is that the first interest rate hike should happen sometime in September this year. We are expecting one interest rate hike this year, and I personally believe that the hike will not be more than 50 basis points this year.

"Our base case is that we'll end the year 25 basis points higher," he said.

He added that there would be minimal impact on the Asian markets following the interest hike, as local markets had already priced in the effect of a single interest rate hike.

On the strengthening dollar, Chia expects the greenback to continue its rally over the next three years, with an upside of between 15% to 20% until 2018.

He noted that the dollar had already risen 29.1% during the past three years.

Looking ahead, UOBAM is overweight on the Chinese yuan, Indonesian rupiah, Indian rupee, Hong Kong dollar and Philippines' peso, while it is underweighed on the ringgit, Singapore dollar, Thai baht, and Korean won.