This article first appeared in Wealth, The Edge Malaysia Weekly on June 22, 2026 - June 28, 2026

New fund launches from May 18 to June 12 were dominated by income products that invest across various asset classes, including equities, bonds, private credit and even derivatives, according to the official website of the Federation of Investment Managers Malaysia.

Amanah Saham Nasional Bhd (ASNB) also launched six new products, including Amanah Saham Bumiputera (Class B) 1 and 2, Amanah Saham Bumiputera-3 Didik (Class B) and Amanah Saham Malaysia 1, 2 and 3 (Class B).

In total, at least 14 funds were launched during this period.

Launched on June 9, this is a wholesale feeder fund that injects investors’ money into the target fund, which is the CSOP Hang Seng China Enterprises Index (HSCEI) Covered Call Active ETF.

According to its product highlights sheet, the fund has two classes, namely A and D. Dividend distribution for the former is incidental, subject to the availability of income, while the latter aims to distribute dividends on a monthly basis.

The fund may distribute from its capital to give it the ability to distribute income on a regular basis in accordance with its distribution policy and to increase the amount of distributable income to unitholders.

Meanwhile, the target fund is listed on the Stock Exchange of Hong Kong Ltd (HKEX) and is managed by CSOP Asset Management Ltd. The firm was founded in 2008 in Hong Kong and was the first offshore entity set up by a regulated Chinese asset manager.

Referring to the product key facts of the target fund, the CSOP HSCEI Covered Call Active ETF is a sub-fund of the CSOP ETF Series, an umbrella unit trust established under Hong Kong law.

The ETF’s investment objective is to generate income and pursue capital appreciation while mitigating downside risk through a covered call strategy.

In simple terms, this strategy involves an investor who already owns shares selling a call option — giving someone else the right to buy those shares at a fixed price within a set period — in exchange for an upfront premium. However, if the value of the stock surpasses that fixed price, the investor is obligated to sell his shares at the predetermined price, thus giving up further gains. Hence, it should be noted that the use of the covered call strategy limits potential upside.

The product highlights sheet mentions that the ETF generates income in two ways, mainly from exposure to constituent equity securities in the HSCEI, which can be done through futures contracts, and from selling listed or over-the-counter HSCEI call options.

The document further explains: “In acquiring the HSCEI futures and selling HSCEI call options, the manager anticipates that not more than 25% of the net asset value (NAV) of the sub-fund will be used as margin from time to time. Under exceptional circumstances (for instance, when there is increased margin requirement by the Hong Kong Futures Exchange, the HKEX and/or brokers in extreme market turbulence), the margin exposure may increase substantially beyond 25% of the NAV of the sub-fund.”

The margin refers to the collateral, or cash deposits, that the fund must put up and maintain with the exchange or its brokers to back its futures and options positions.

It also specifies that “the manager may, on behalf of the sub-fund, enter into securities lending transactions, with the maximum level for up to 50% and expected level for approximately 20% of its NAV, and is able to recall the securities lent out at any time.

“As part of the securities lending transactions, the sub-fund must receive cash and/or non-cash collateral of at least 100% of the value of the securities lent (interest, dividends and other eventual rights included). The collateral will be marked-to-market on a daily basis and safekept by the trustee or an agent appointed by the trustee. Non-cash collateral received may not be sold, reinvested or pledged”.

Overall, the sub-fund’s net derivative exposure may be up to 50% of its NAV.

According to its product highlights sheet, the fund has a minimum initial investment of RM5,000 for its RM Class A and Class D, and a minimum additional investment amount of RM1,000. It also imposes an entry charge of up to 5% and an annual management fee of up to 1.5%.

Launched on June 5, it is an open-ended wholesale feeder fund that injects investors’ money into the Value Partners High-Dividend Stocks Fund, its target fund.

A minimum of 70% of the fund’s NAV is to be invested in the target fund, while a maximum of 30% is to be invested in money market instruments, deposits and/or derivatives for hedging purposes.

Its product highlights sheet mentions that the Value Partners High-Dividend Stocks Fund invests in the stock markets of the Asia-Pacific region, with Greater China as its main focus.

“The fund will concentrate on investing in interest-bearing or dividend-distributing debt and equity securities of companies or issuers in the Asian market. All this while maintaining a flexible allocation to other asset classes, including cash, deposits, short-term paper and other fixed-income instruments.”

The fund manager utilises derivatives for hedging purposes, which include, but are not limited to, forward contracts, futures and swaps.

As at May, the fund’s top five holdings were Taiwan Semiconductor Manufacturing Co Ltd (9.2%), Samsung Electronics Co Ltd (7.9%), China Everbright Environment Group Ltd (3.5%), HKT Trust and HKT Ltd (3.5%) and AIA Group Ltd (2.9%), according to its fund fact sheet.

China Everbright Environment is a Hong Kong-headquartered industrial conglomerate involved in the businesses of environmental energy, environmental water, equipment manufacturing, green technology and environmental technology.

HKT Trust and HKT Ltd is a technology, media and telecommunications company with more than 150 years of history in Hong Kong, and is the city’s 5G provider.

Geographically, the top three countries were Hong Kong (25%), Taiwan (19%) and South Korea (18%). It also invests 13% of its funds in Red Chips- stocks of mainland China companies incorporated outside China- and 7% in H-shares.  

Sector wise, the largest allocation was in information technology (26%), followed by consumer discretionary (12%), industrials (12%), communication services (11%) and consumer staples (7%).

The fund has a minimum investment amount of RM30,000 and a minimum subsequent investment amount of RM10,000 for its ringgit share class, according to its fund fact sheet. It charges investors an initial sales charge of up to 5.5% and an annual management fee of up to 1.65%.

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