UOB Asset Management To Set Up Brunei Unit

Vanessa Doctor

1 April 2010

UOB Asset Management Sdn Bhd is preparing to set up a new fund to be based in Brunei, granted that the asset manager finds a good partner, Brunei FM reports.

"We are now distributing the United Asia Fund, which is developed in Singapore but registered in Brunei, so it's actually re-registered in Brunei," Kamal Haji Muhammad, the firm's general manager, was quoted as having said.

Under the guidelines by the Brunei International Financial Centre, all funds have to be first registered before they are presented to the public. Kamal reportedly said that establishment of the planned Brunei-based unit would depend on the firm finding a reliable institution or partner that will provide the necessary funding. It remains unknown when the new fund will be set up, but the company is targetting a launch within this year.

"The other challenge is promoting people to invest in non-conventional investments," Kamal had added.

Fixed deposits had been the investment product of choice, but the global financial crisis of 2008 had begun driving investors to look into alternative and possibly safer non-interest rate-dependent channels.

UOB Asset Management has been operating in Brunei since 2007. The local fund will be initially supported by the Singapore arm, given its stability, the news service said. Eventually, all tasks will be shouldered by the Brunei team.