CIMB-Principal Asset Management Bhd said the fund — the latest addition to its suite of 20 Islamic funds – has a target fund size is RM300mil in assets under management within a year of the fund’s inception.
The objective of the fund is to achieve long-term capital appreciation and investors can access equities in numerous emerging and developed markets.
CIMB-Principal CEO Munirah Khairuddin said: “We are bringing this fund to our investors at an opportune time where global economic growth is at a positive trajectory.
“Global equity markets continue to be in a sweet spot, where we see strong earnings in both emerging and developed markets, ample global liquidity to support inflows into equity markets and compelling valuations.
“The fund presents an excellent opportunity for investors who are looking to diversify globally and to benefit from an exposure to global trends.”
Munirah said the CIMB Islamic Global Equity Fund is aligned to CIMB-Principal’s strategic value proposition to provide customers with unparalleled Shariah-compliant investment opportunities across various asset classes and across numerous markets globally.
“I am confident there will be good appetite for the fund and we will be able to meet our target fund size of RM300 million in assets under management within a year of the fund’s inception,” Munirah added.
Among those present at the launch were CIMB-Principal chief investment officer Patrick Chang and CIMB-Principal head of agency and business development Grace Allison Toh.
According to CIMB-Principal, the world economy could more than double in size by 2050, far outstripping population growth, due to technology-driven productivity and more robust global demand.
The International Monetary Fund (IMF) expects world growth to increase to 3.5% in 2017 and 3.6% in 2018.
CIMB-Principal Islamic Global Equity Fund is suitable for investors seeking a Shariah-compliant global portfolio with an investment horizon of at least five years.
The fund is available to investors in ringgit with a minimum initial investment of RM500.
Backed by CIMB-Principal’s global experience, and expertise, the fund will invest a minimum of 70% and up to a maximum of 98% of its net asset value (NAV) in Shariah-compliant global equities and equities related securities to gain long-term capital growth.
The fund may also invest up to 28% of the Fund’s NAV in Sukuk, Shariah-compliant money market instruments and Islamic deposits.
CWA, a wealth management and product distribution arm of CIMB-Principal, is the exclusive distributor of the fund.