Auyeung (left) and Sik at the launch of Pacific ELITE funds.

FOR the first time in Malaysia, investors will be able to take up equity unit trust products from a bank without having to pay sales charges of up to 5%.

Marketed exclusively by OCBC Bank (Malaysia) Berhad and managed by Pacific Mutual Fund Bhd (Pacific Mutual), the Pacific ELITE funds allows investors to have equity exposure via a unit trust scheme without any sales charges up front.

OCBC Bank head of consumer financial services Charles Sik said consumers in Malaysia have come to accept upfront sales charges in unit trusts as the only possible option when making investments.

"As an innovator in retail financial products and services, we believe the time has come for us to make available the option of unit trusts that are devoid of sales charges," said Sik, adding that similar products have been in existence globally for years.

"Essentially, we are telling the banking public out there that they can now earn from the very start, rather than having to begin their investment into unit trusts by having to recoup early ‘losses’ incurred through the upfront fee," he said.

Pacific Mutual chief executive officer Michael Auyeung said investors in Malaysia are growing in sophistication and their appreciation of investment dynamics has translated to a more rigorous demand that their fund managers actively manage the risk/return parameters of their funds.

"As such, more and more investors are staying invested with fund managers that have a trusted and proven performance record. That all of their monies will be going to work from day one, that type of enhancement, will be viewed positively," said Auyeung.

Since Feb 5, OCBC Bank has been offering four Pacific ELITE funds comprising three Islamic funds based on Shariah principles and one conventional fund.

The Islamic funds are Pacific ELIT Islamic AsiaPac Balanced Fund (PEIAPBF), Pacific ELIT Dana Aman (PEDA) and Pacific ELIT Dana Dividen (PEDD) while the conventional fund is Pacific ELITE Dividend Fund (PEDF).

According to Sik, the OCBC Al-Amin franchise has been under-represented and the company aims to grow it hence the emphasis on Islamic products in the Pacific ELITE funds series.

He also said the company hopes to achieve a sales target of RM200 million before year-end. The funds’ minimum initial investment is RM10,000 with a total size of 800 million units and an initial issue price of RM0.50 per unit.

Meanwhile, Auyeung said investors can expect to see a double-digit return on their investment.

"If you look at the market this year, things are challenging. However, I think the second half of the year will be more certain and when it is a little clearer, we can achieve the double-digit target," he said.

He added that Pacific Mutual intends to introduce multiple currencies unit trust funds this year after the Securities Commission approves new guidelines for the unit trust industry, which includes allowing multiple currencies for unit trust funds.

Sik said OCBC Bank plans to offer more products under the Pacific ELITE funds series before middle of the year but the quantity and type of product would depend on how investors react to the series. He said the bank hopes to add a global fund to the series.

To date, OCBC Bank has marketed 90 conventional funds and about 20 Islamic funds while Pacific Mutual currently manages assets worth RM2 billion.

The Pacific ELITE funds are available at all OCBC Bank and OCBC Al-Amin branches. Call 1300 88 5000 to find out more.