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| PRESS RELEASES / NEWS |
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| 01 August 2012 |
Kuala Lumpur: CIMB-Principal Asset Management Berhad (CIMB-Principal) today launched the CIMB Islamic Al-Azzam Equity Fund, a Shariah-compliant equity fund which aims to achieve consistent capital growth over the medium to long-term period. With a geographical focus in Malaysia, it will invest in Shariah-compliant companies listed on Bursa Malaysia. Fund managers believe that these companies would exhibit above-average growth potentials relative to the industry peers.
At a ceremony held earlier today, Munirah Khairuddin, Deputy Chief Executive of CIMB-Principal commented, “Having witnessed a slowdown in several Europe economies, Malaysia is likely to outperform its regional peers despite its exposure to these nations. Although our economy may not be spared from the financial turmoil, the local authority remains optimistic as Malaysia is believed to stay resilient. Coupled with the Government’s efforts of 110 initiatives introduced under the Economic Transformation Programme (ETP) worth RM177 billion, this would certainly help stimulate the economy. With this in mind, we have established the CIMB Islamic Al-Azzam Equity Fund, as we are confident investors would be able to capitalise on the consistent capital growth from the medium to long-term time horizon the Fund has to offer.”
The Fund’s investment focus will be on companies with healthy cash flows and high dividend yields, mainly in oil & gas, plantations and consumer discretionary sectors. The fund manager believes that the Fund would also exhibit above-average growth potentials relative to its industry peers. It is suitable for investors who are willing to take moderate level of risks, while at the same time, wish to have a portfolio of securities that are Shariah-compliant.
Commenting on the potential of the Fund, Munirah said, “With a young demographic and a rising middle class brought about by above-average GDPs over the years, Malaysia is better prepared than other market economies due to its strong domestic demand. Meanwhile, Shariah-compliant unit trust funds continue to gain popularity even among non-Muslims, because the equity component of such funds can be less volatile and more defensive in nature. These elements help boost investors confidence when investing in Malaysia.”
Malaysia has attracted a fair bit of foreign funds, which seek a safe haven amidst current volatile Asian markets. Asset allocators will continue to position monies here as long as regional volatility remains. This has lifted Malaysia’s Price Earning Ratio (PER) premium contribution to the region to a high of 38%. Additionally, the premium is also partly justified by the 11% higher Malaysian’s Earnings per Share (EPS) growth contribution to the region. Over recent months, markets are receiving more funding for the ETP and national budget programmes focused on economic growth.
“With a minimum investment of RM500, even individual retail investors can have access to established companies such as Axiata, Tenaga Nasional Berhad, IOI Group and Digi, among others,” conclude Munirah.
The Fund has an approved fund size of 600 million units, priced at RM0.25 per unit during the initial offer period. The Fund is distributed by CIMB Bank, CIMB Private Banking, CIMB Investment Bank Berhad – Retail Equities and CIMB Islamic Bank, with the initial offer period ending on 21 August 2012.
In March 2012, CIMB-Principal won Best Overall Fund Group at the Edge-Lipper Malaysia Fund Awards 2012 and was recognised for consistent performance for six funds across different asset classes.
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