New Fund: Public Islamic Alpha-40 Growth Fund

Public Islamic Alpha-40 Growth Fund is an Islamic equity fund that seeks to achieve capital growth by investing up to a maximum of 40 selected Shariah-compliant blue chip stocks, index stocks and growth stocks listed primarily on Bursa Securities and regional markets.

The fund adopts a more focused investment strategy and is able to achieve potentially higher returns over the mid to long term as it concentrates its investment in a portfolio of not more than 40 stocks. Currently, 88% of securities listed on local bourse are Shariah-compliant representing about two-thirds of Bursa Malaysia's market capitalization.

The equity exposure will generally range from 75% to 98% of its NAV. To achieve increased diversification, the fund may invest up to 30% of its NAV in selected foreign markets, which include Singapore, Taiwan, South Korea, Japan, Australia, New Zealand, Hong Kong, China, Thailand, Indonesia, Philippines and other markets.

Source: Public Mutual

New Fund: Public Far-East Alpha-30 Fund

Tag: "Achieve higher potential returns by investing in 30 choice stocks". Yet, Public Mutual is launching another new equity fund which focuses its investment in 30 choice stocks listed in domestic and regional markets with the aim of achieving potentially higher returns over the medium to long-term. The fund is suitable for aggressive investors.

What is Alpha?

Alpha is defined as excess returns obtained as a result of certain investment strategies undertaken by a fund. One of the strategies for a fund to achieve alpha or excess returns is via "focus investing" which involves maintaining a concentrated portfolio of up to 30 stocks that are expected to outperform the broader market over time.

Funds which practise focus investing are suitable for investors with higher risk profiles seeking potentially higher returns as the fund's concentrated portfolio may result in increased volatility over short-term periods. 

To achieve increased diversification, the fund my invest up to 98% of its net asset value (NAV) in selected Far East markets which include South Korea, China, Taiwan, Japan, Hong Kong, Philippines, Indonesia, Singapore, Thailand, India, Australia, and other permitted markets.

Initial Offering Period : 6 - 26 April 2010

Service Charge          : 5.50%

Minimum Investment  : Rm 1,000

Minimum Top-Up      : Rm   100

Initial Issue Price        : Rm 0.2500

Source: Public Mutual, The Star