Principal Asset Management Berhad (Principal) has recently launched the Principal Islamic ASEAN Equity Fund. Through the fund, investors will have the opportunity to capitalize on a diversified portfolio of equity investments that adheres to Shariah principles.
“We plan to expand our Islamic product offering and in doing so, build and capitalize on our core expertise in the Asean market and established track record in holistic Islamic asset management. These offerings will meet the growing demand for Islamic products and help clients meet their financial objectives with integrity,” says Munirah Khairuddin, CEO of Principal Asset Management.
The fund seeks capital growth over the medium to long term through one Islamic collective investment scheme, which invests primarily in the ASEAN region. Designed as a Shariah-compliant feeder fund, the fund will invest at least 95% of its net asset value (NAV) in the Islamic ASEAN Equity Fund, a portfolio managed by Principal Islamic Asset Management (Ireland) plc (formerly known as CIMB-Principal Asset Management (Ireland) plc.,and will maintain up to 5% of its NAV in Islamic liquid assets.
“Islamic investing transcends cultural and religious boundaries; increasingly non-Muslim investors are demanding Shariah compliant funds as these investments generally offer more stable and consistent returns particularly during volatile and uncertain periods,” says Dato’ Paduka Syed Mashafuddin Syed Badarudin, CEO of Principal Islamic Asset Management. “At a time when the intersection between Shariah values and responsible investing continues to expand, it is now ripe for Islamic investing to make great strides,” he added.
Managed by an experienced team, the fund allows investors to potentially benefit from differing economic cycles as Asean countries are divided into three economic stages – mature economies, emerging economies and high-growth economies. When considered as a whole, Asean is the fifth-largest economy in the world with a combined GDP of more than US$3 trillion and a population of more than 650 million.
The fund is established with a multi-class structure of three share classes; Class MYR, Class SGD and Class USD with an initial offer price of 0.2500 Malaysian ringgit (US$0.062), S$0.2500 (US$0.19) and US$0.2500 per unit, respectively. Each class may differ in terms of currency denomination, fees and charges, and hence will have its own NAV per unit denominated in its respective currency taking into account the features.