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16 March 2015

CIMB-Principal Launches Malaysia’s First ASEAN Qualifying CIS Fund

CIMB-Principal is confident with ASEAN’s potential for the new equity fund 

Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) has successfully launched CIMB-Principal ASEAN Total Return Fund (“the Fund”), the first fund under the ASEAN Qualifying Collective Investment Scheme (“CIS”) in Malaysia. This Fund aims to achieve potential capital appreciation over the medium to long term by investing in the ASEAN region.

Munirah Khairuddin, Chief Executive Officer of CIMB-Principal said, “As one economy, ASEAN would be the seventh largest in the world with a combined gross domestic product (“GDP”) of US$2.5 trillion. It is expected to grow by an annual average of 5.6% for the next five years. We firmly believe the CIMB-Principal ASEAN Total Return Fund will enable investors to benefit from the economic strength in the ASEAN region, which is expected to grow at a faster rate compared to major developed nations. Furthermore, the emergence of middle class consumers and increased integration through trade agreements such as the ASEAN Economic Community (“AEC”), Trans-Pacific Partnership (“TPP”), and Regional Comprehensive Economic Partnership (“RCEP”) will also bring in more Foreign Direct Investment (“FDI”) to ASEAN countries.” 

The new Fund aims to achieve a target return of 9% over the medium to long term by investing in companies with above average growth potential when compared to its industry or the overall market, particularly companies that offer attractive potential yields and sustainable dividend payout policies. It is suitable for investors who are willing to take moderate risks.

“With the implementation of the CIS Framework, cross-border offering of the Fund to participating countries will enable us to grow the size of the Fund and provide investors the benefits of economies of scale. In addition, our presence and local expertise in the key ASEAN countries in Malaysia, Singapore, Thailand and Indonesia provide us useful and valuable insight to provide the desired investment returns for our investors. Looking at this positive development, we are expecting the Fund to bring in RM300 million in sales,” Munirah added.

The Fund is offered for subscription in the Malaysian Ringgit and the US Dollar at RM0.50 and USD0.50 per unit respectively, for the 21-day initial offer period from 3 March to 23 March 2015. The minimum initial investment for the Fund is RM500 or USD200. Investors can purchase the Fund from CWA and soon, other leading participating banks. HSBC (Malaysia) Trustee Berhad ("HSBC Trustee") has been appointed as the Trustee of the fund, based on its experience in executing fiduciary responsibilities over 170 domestic and foreign funds. For more information, please feel free to contact our Customer Care Centre at 03-7718 3000 or log on to www.cwealthadvisors.com.my.

To date, CIMB-Principal has a total of 70 unit trust funds (19 are Shariah-compliant), 15 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs). The Company recently won fund performance awards by The Edge | Lipper Malaysia Fund Awards 2015 for the Best Equity Asia Pacific Ex Japan, 3 years and 5 years, Best Equity Global, 3 years and 5 years as well as Best Equity Asia Pacific Ex Japan (Islamic), 3 years and 5 years categories. For Morningstar Awards 2015 Malaysia, the Company bagged the award for Best Asia Pacific Equity Fund category. As at 31 January 2015, CIMB-Principal Group has a total of RM57 billion in assets under management (AUM).