The Fund seeks to provide investors with capital appreciation by investing in Shariah-compliant investments.
Equity EPF -MIS
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.
The Fund will focus on achieving its objective by investing in a diversified portfolio consisting a minimum of 70% of the Fund’s NAV in Shariah-compliant equities and a maximum 30% of the Fund’s NAV in Islamic money market instruments and/or Islamic deposits.
As the Fund focuses on participating in growth opportunities within the Asian (ex Japan) region, the Fund’s investments will be primarily into equities listed or issued within the Asian (ex Japan) markets. Secondarily, the Fund will also hold the flexibility to invest up to a maximum of 30% of the Fund’s NAV into opportunities outside the Asian (ex Japan) markets to capitalise on sectors and/or markets that would benefit from the growth prospects of the Asian (ex Japan) region.
While the Fund’s core investments will remain in Shariah-compliant equities, the Fund holds the option to invest into Islamic money market instruments and Islamic deposits. The selection will depend largely on its credit quality where the respective issuers display strong ability to meet their financial obligations, healthy cash-flow, the collateral type, value, claims priority as well as offer highest safety for timely payment of interest and principal.
To achieve its objective, the Fund will also have the flexibility to hold exposure in warrants, as well as collective investment schemes that have a similar investment objective to the Fund.
The Fund will be actively managed and we look to maintain some core holdings that are held over the medium to long term, which is similar to a buy and hold strategy. We will also maintain a trading portion for the portfolio, which we will use to take advantage by participating in investment opportunities that are set to benefit from prevailing market conditions, with the aim of boosting the Fund’s performance.
To meet its objective, the Fund will maintain a minimum 70% of the Fund’s NAV in investments listed or issued within the Asian (ex Japan) markets. The Fund will have a flexibility to invest up to 30% of its NAV in investments listed or issued in foreign markets outside the Asian (ex Japan) region. The decision to invest into foreign markets will be opportunistically driven where we would seek out investments that could provide a potential to enhance the returns of the Fund. The Fund will invest only into countries where the regulatory authorities are ordinary or associate members of the IOSCO.
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. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential foreign exchange gains from the hedging strategy will be capped as well.
The employment of Shariah-compliant derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV.
Temporary Defensive Position
We hold the option to take temporary defensive positions that may be inconsistent with the Fund’s principal strategy and asset allocation to protect the Fund against adverse market conditions that may impact financial markets. To manage the risk of the Fund, we may shift the Fund’s focus and exposure into lower risk investments such as Islamic money market instruments, and/or Islamic deposits.
The Fund’s asset allocation range is as follows:-
% NAV of the Fund
Liquid assets which may include Islamic money market instruments and Islamic deposits with Financial Institutions
Minimum Initial Investment
Minimum Additional Investment
Minimum Units Held
FEES & CHARGES
Sales Charge per Unit
Up to 6.50% of the Initial Offer Price of a Class during the Initial Offer Period and thereafter, the NAV per Unit of a Class You may negotiate for a lower Sales Charge.
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).