The Fund seeks to provide investors with capital appreciation by investing in Shariah-compliant investments.
14 December 2015
This Fund is suitable for you if you:-
seek Shariah-compliant investments;
seek potential capital growth;
have a medium to long term investment horizon; and
are risk tolerant.
To achieve its objective, the Fund will focus on investment in Shariah-compliant equities in Asia (ex Japan) region.
A minimum of 70% of the Fund’s NAV will be invested into Asian (ex Japan) countries. The Fund may also invest up to a maximum of 30% of its NAV into investments outside the Asian region with companies that are domiciled or derive their earnings from the Asian (ex Japan) region. The Fund seeks to invest in foreign markets where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions
(IOSCO). The Fund will also hold a maximum of 30% of the Fund’s NAV in liquid assets which may include Islamic money market instruments and Islamic deposits with Financial Institutions. The Fund may also invest into Shariah-compliant collective investment schemes that are in line with the Fund’s investment objective.
The Manager will invest in Shariah-compliant equities of corporations that practices good corporate governance. Some of the criteria that will be taken into account in the selection process are transparency, accountability, and integrity of the management of these corporations. They include practices of having independent directors on the board, transparent business procedures and financial information, accessible management team to investors and protecting minority shareholders’ rights. However, the practice of good corporate governance in isolation does not necessarily lead to investment outperformance. Hence, in order to enhance returns for Unit Holders, the Manager will also conduct fundamental analysis to determine the appropriateness of the investment. As such the Manager will also consider the following:-
Industry and business medium to long term outlook;
Management track record or quality;
Financial strength and gearing levels;
Earnings and cash flow volatility;
Expected future earnings growth; and
Share price valuation.
The Manager believes opportunities to maximum returns will exist, irrespective of bull or bear market conditions. The Manager would have the flexibility to remain invested in the market during periods of market upturn, or liquidate investments and hold liquid assets before values are eroded during market downturns. The Manager may take temporary defensive positions that may be inconsistent with the Fund’s principal strategy by holding up to all the Fund’s NAV in Sukuk, Islamic money market instruments and Islamic deposits with Financial Institutions in attempting to respond to adverse market conditions that may impact the financial markets.
Policy on Active and Frequent Trading of Securities
Over investment philosophy is to invest in Shariah-compliant equities with a medium to long-term investment horizon bias. As such, our policy on trading is that the Fund will maintain a portion of its portfolio in core holdings, i.e. holdings that it intends to hold over a medium to long-term investment horizon to capitalise on growth potential from its investments. Similarly, we will also take advantage of shorter term trades to take advantage of market opportunities that may be beneficial for the Fund in meeting its objective.
Derivative Investments for Hedging Purposes Only
The Fund may employ Shariah-compliant derivatives such as Islamic cross currency swaps and other Shariah-compliant derivatives that are approved by the Shariah Adviser for hedging purposes. These instruments may be used to hedge the principal and/or the returns of the foreign-currency denominated investments back to the Fund’s Base Currency.
The Employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV.
The Fund’s asset allocation range is as follows:-
Minimum of 70% of the Fund’s NAV
Liquid assets which may include Islamic money market instruments and Islamic deposits with Financial Institutions
Maximum of 30% of the Fund’s NAV
Minimum Initial Investment
Minimum Additional Investment
Minimum Units Held
FEES & CHARGES
Sales Charge per Unit
Up to 6.5% of the Initial Offer Price of a Class during Initial Offer Period and thereafter, on the NAV per Unit of a Class.
Annual Management Fee
Up to 1.80% per annum of NAV of the Fund.
Trustee Fee / Custodian fee
Up to 0.06% per annum of the NAV of the Fund (excluding foreign custodian fees and charges) and is calculated using the Base Currency.
RM5.00 per transfer.
There are two (2) types of switching facilities available for
the Fund, which are:-
1. Switching between Class(es) of the Fund; and
Investors are entitled to two (2) free switching transactions per calendar year per account when switching between the Class(es) of the Fund. A switching fee of up to 1% of the NAV per Unit of the Class switched out from will be charged for any further switching transactions.
2. Switching from this Fund into other funds managed by the Manager.
Investors are allowed to switch from the Fund into other funds managed by the Manager provided that
the currency denomination of the fund that they intend to switch into is the same as the Fund. A switching fee of up to 1% of the NAV per Unit of the Class switched out from the Fund will be charged within the first six (6) months from the date of the investment by the Unit Holders.