OSK-UOB Dana KidSave

One of the most desired by an investor, is to achieve diversification in his or her portfolio and what better way to do so then by investing in a balanced fund. A balance in an investment portfolio is also fundamental to appease an investor in times of uncertainties and volatility. Such a balance can appeal to the investor of any age regardless of his or her objectives. Thus, with market uncertainties continuing to prevail over the Eurozone debt crisis and its contagion effect on the global economy, investors remain cautious with their investment choice, seeking to invest in low to moderate risk investments such as a balanced fund.

Hence, OSK-UOB offer you a Shariah-based fund with its balanced asset allocation strategy in equities and investments comprising sukuk, islamic money market instruments, deposits and collective investment schemes. The investment in equities will enjoy potential capital appreciation upswings while any downswings will be cushioned by its investments in the latter which are defensive in nature.

When making investments, the manager may invest up to 30% of NAV in foreign markets. The fund will invest in Shariah-compliant securities/instruments listed on or traded in Asia Pacific ex Japan markets, including Shariah-compliant securities / instruments of companies that are listed on or traded in non-Asia Pacific ex Japan markets (such as NYSE and LSE).

How about Sukuk ?

At lease BBB rating sukuk issued by Malaysian incorporated companies at the point of purchase by RAM Rating Services Bhd or equivalent rating agencies. Foreign sukuk issued by corporations and financial institutions must carry a rating of BB or higher by S&P or equivalent, whereas sukuk issued by supra-nationals, governments and their agencies need not be rated.

Click here to download prospectus

Source: OSK-UOB IM

New Fund: Hwang AIIMAN Select Income

After the successful performance of AIIMAN series and the superb proven track record of Hwang Select Income fund, it's natural for Hwang to launch this new fund by riding on the story of these.

What is the Hwang AIIMAN Select Income fund?

This is a Shariah-compliant mixed asset (conservative) income unit trust fund that seeks to provide investors with regular income stream through Shariah-compliant investments. It also serves as an alternative investment for investors looking to diversify their portfolio into the fast growing Sukuk market and attractive Shariah-compliant equity market.

What it offers you?

1. Potentially Stable Returns and Regular Income by investing in prudently selected Sukuk and quality dividend yielding equities.
   
   
   
2. Peace of Mind: Managed at Low Volatility rates. It aims to deliver positive returns at low volatility rates through various market cycles.
   
   
   
3. A Diversified and Shariah-compliant Investment. Potential for enhanced return due to the opportunity to tap into new attractive Shariah-compliant investment in view of growing demand for Islamic securities, growth fueled by ample liquidity in the Gulf Corporation Council (GCC) and Asia, coupled with the increasing sovereign Sukuk issuers.

Click here to download prospectus

Source: HwangIM

NEW Aberdeen Islamic Funds

Aberdeen Islamic Asset Management Sdn Bhd has recently launched two shariah unit trust funds for the Malaysian market, the Aberdeen Islamic Malaysia Equity fund and the Aberdeen Islamic World Equity fund. The new funds are the company's 1st shariah retail products in Malaysia - and the 1st from a foreign fund manager under the special scheme - and come almost 8 years its parent company Aberdeen Asset Management Sdn Bhd was established to manage assets in Malaysia for institutions and corporate investors.

Malaysia: Turning promise into profit

Malaysia has long been rich in promise - rich because of its abundant natural resources, physical infrastructure and educated workforce. However it has not always maximize its advantages. In recent years that has changed as the country streamlines priorities. There is more emphasis now on efficiency, the private sector has a greater say across industries and more value is being created for shareholders. This enterprise is taking Malaysian companies overseas, too, helping businesses to sharpen their competitive edge.

Why Global then?

International markets are continually evolving, underpinned by increased movement of people, goods and capital around the world. But far from embracing 'globalization', research shows that investors tend to follow a home-country bias when it comes to their investments. As a result, they miss out on investments overseas that may offer steadier long-term returns as well as superior risk diversification.

Fund Detail

Source: Aberdeen Islamic Asset Management

New Fund: CIMB Islamic Al-Azzam Equity Fund

Launched on the same day with AmMutual new fund, the CIMB Islamic Al-Azzam Equity Fund is an open-ended fund that aims to achieve consistent capital growth over the medium to long term.

The asset allocation strategy for this Fund is as follows: 

• between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant Malaysian equities; and 
• up to 30% of the Fund’s NAV in other Shariah-compliant investments and Shariah-compliant liquid assets, with at least 2% of the Fund’s NAV to be maintained in Shariah-compliant liquid assets.

For this Fund, the investment into Sukuk must satisfy a minimum credit rating of “A3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. In line with its objective, the investment  strategy and policy of the Fund is to rebalance the portfolio to suit market conditions in order to reduce short-term volatility and provide consistency in capital growth.


More on Investment Strategy...

CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic  product growth, interest rates, inflation, currencies and government policies.

CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at “reasonable valuations”. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples.

Who is suitable for this Fund? They are investors who: 

• have a medium to long-term investment horizon; 
• want a portfolio of investments that adhere to the Shariah principles; 
• want a diversified portfolio that includes Shariah-compliant equities and Sukuk; and/or 
• are seeking capital appreciation over medium to long-term.

Source: CIMB-Principal Asset Management
Click here to download the fund prospectus

New Fund: AmDynamic Sukuk

After the spectacular performance of AmDynamic Bond fund, AmInvestment Services Bhd would like to replicate the success of the conventional fund into this newly launched shariah compliant fund.

The Fund aims to provide capital appreciation by investing primarily in Sukuk both locally and globally. To achieve the investment objective, the Fund will undertake active management to enhance and optimize returns from investing in sovereign, quasi-sovereign and corporate Sukuks. The sectorial weightings maybe adjusted to maximize the performance. There is no minimum rating for a Sukuk purchased or held by the Fund.

More about the Fund

Value-add of the Fund is derived from active tactical duration management, yield curve positioning and credit spread arbitrage. Credit spread arbitrage and yield curve positioning is part of relative value approach that involves analysis of general economic and market conditions and the use of models to analyze and compare expected returns as well as the assumed risks. The Investment Manager will focus on Sukuk that would deliver favourable return in light of the calculated risks.

In addition, the Investment Manager may also consider Sukuk with favourable or improving credit outlook that provide the potential for capital appreciation for these investments. The Fund may invest in Sukuk of varying maturities. The Fund’s investment maturity profile is subject to active tactical duration management in view of the interest rate scenario without any portfolio maturity limitation.

The Fund invests globally, including but not limited to Malaysia, Singapore, Indonesia, United Arab Emirates, Saudi Arabia, Bahrain, United Kingdom, Luxembourg, Jersey, Bermuda, Brunei, China, Australia, New Zealand, Japan, Hong Kong, United States of America and Germany. Notwithstanding the above, investments in foreign markets are limited to markets where the regulatory authority is a member of the International Organization of Securities Commission (IOSCO).

AmDynamic Sukuk is suitable for investors who:

• want steady growth in value by investing in Sukuk as an asset class;
• have Medium to Long Term investment goals; and
• are willing to assume additional interest rate risk, duration risk and liquidity risk associated with investing in Sukuks with longer duration and lower credit ratings.

Click here to download the fund prospectus

Source: Fund's prospectus

New Fund: Public Islamic Savings Fund

The Public Islamic Savings Fund (PISVF) is  an Islamic equity fund that seeks to provide income over the medium to long-term period by investing in a diversified portfolio of primarily Shariah-compliant Malaysian stocks which offer or have the potential to offer attractive dividend yields. PISVF may also invest in Shariah-compliant growth or recovery stocks that have the potential to eventually adopt a dividend payout policy.

As the Fund focuses its investments mainly in the domestic market, PISVF offers investors an opportunity to capitalise on Malaysia’s resilient economic growth prospects in the medium to long-term. The performance of selected Shariah-compliant sectors of the Malaysian economy is expected to remain supported by sustained consumer and investment spending over the longer term.

To achieve increased diversification, the Fund may also invest up to 30% of its net asset value (NAV) in selected foreign markets which include  Singapore, Taiwan, South Korea, Japan, Hong Kong, Thailand, Indonesia, Philippines, Luxembourg and other permitted markets.

Growth Prospects for the Malaysian Economy

The Malaysian economy is expected to expand by 4.5% in 2011 and 5.4% in 2012 supported by resilient domestic demand amid higher investment spending and firm private consumption. Despite the anticipated slowdown in external demand amidst a more challenging global economic environment, Malaysia’s domestic economy is supported by  sustained  growth in disposable income, favourable demographic trends and affordable lending rates.

Over  the medium to long-term, higher investment spending under the Economic Transformation Programme (ETP) is expected to boost the performance of  selected Shariah-compliant sectors in Malaysia. The communication sector should experience an increase in activities with targeted rollout of 10 content and infrastructure projects with an estimated investment value of RM51billion. This sector offers promising growth prospects as improved communications infrastructure is expected to contribute to the enhancement of business transactions, improvement in information flow and formation of new knowledge in developing high valued human capital in the coming years.

Meanwhile, the consumer sector should continue to benefit from sustained consumer spending in tandem with  resilient incomes. Consumer spending is projected to grow on the back of increased urbanisation, favourable demographics and the government’s efforts to promote tourism activities. To date, the government has announced a total of 12 out 27 projects in the retail and tourism industries with an estimated value of RM25billion under the ETP. 

Furthermore, the 2012 Federal Budget announced in October 2011 contained a wide range of measures to enhance the economic well-being of the lower income, middle-class and the elderly groups. These measures are expected to enhance household disposable incomes and support consumer spending.

The oil & gas sector is also a major beneficiary under the ETP with the national oil company PETRONAS spearheading the initiatives. Since the launch of the ETP, 12 out of 65 projects have been announced with  an estimated investment value of RM88.2billion.

Lastly, the infrastructure sector should experience an increase in activities with the roll-out of projects such as the RM40 billion - RM50 billion Greater Kuala Lumpur Mass Rapid Transit (MRT) project and numerous new highways in the Klang Valley.

Click here to download the prospectus

Source: Public Mutual

New Fund: Public Ittikal Sequel Fund

The Public Ittikal Sequel Fund (PITSEQ) is a Shariah-compliant capital growth fund that invests in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects listed on the Bursa Securities. The fund may also invest in sukuk such as sovereign sukuk, corporate sukuk and Islamic money market instruments to generate returns.

The Fund will focus its investments mainly in the domestic market, capitalising on opportunities arising from Malaysia’s resilient economic growth prospects in the medium-to long-term. Some of the sectors that the Fund may invest in include consumer, industrial, telecommunications and utilities sectors.

How about foreign investment?

To achieve increased diversification, the Fund may invest up to 30% of its NAV in selected foreign markets. The foreign markets which the fund may invest in include Singapore, Taiwan, South Korea, Japan, Hong Kong, China, Thailand, Indonesia, Philippines, India, Australia, United States of America and other permitted markets.

Free Takaful?

The fund comes with free takaful coverage on Group Term Life with Total and Permanent Disability plus Group Personal Accident for unitholders aged between 18 to 59 years with a minimum NAV of RM5,000 at any point of time. The amount of takaful is equal to the NAV of units held in the ratio of RM1 takaful coverage for every RM1 NAV of units held, subject to a maximum amount of RM100,000 per unitholder of the fund.

Source: Public Mutual