Attended the launch of the first Global Islamic Equity Fund yesterday at the National Islamic Museum.One of the interesting keynote by the speaker was that the fund aims to provide outstanding returns even during bearish period of the market. He illustrate it with a story:
2 colleagues, George and Kelvin who works in the same company, gets the same salary and allocates the same percentage of their money in the equity market. Both targets to retire at the year 1997.
George decides to retire early September 1997 while Kelvin decides to retire end of 1997.
So, as planned, George finally retired, with the equity market at its peak performance. He gets to enjoy all the investment benefits and returns that he’d been saving so hard all these years.
9 months later, Kelvin retires. However, the unsuspected Asian financial crisis in the late 1997 shattered his plans for a luxurious retirement. Unlike Kelvin, he most probably end up needing to slave a few more years, or compromising on his retirement lifestyle.
Huge difference, in just a short period of time.
Well, the story above is just an illustration. No one should put all his money in the equity market, which is exactly the second point the speaker emphasized. He shown a few charts from US markets, UK markets, Germany markets etc, all of them showing how the equity market WILL OUTPERFORM bonds, money markets in the medium to long term period.
Hence, he mention that he does not recommend that one lumps all her savings into the equity market, but invest a comfortable amount so that this amount will provide a faster way to accumulate its value.
Here are some key datas on the Fund extracted fromthe prospectus:
Investment Objective
Achieve moderate capital and income appreciation over a medium to long term by investing in shares of global Syari’ah compliant companies.
Asset Allocation
A minimum of 95% of the Fund’s NAV will be invested in Crescent Global Equity Fund while maintaining up to a maximum of 5% of the Fund’s NAV in liquid assets.
Performance Benchmark
Dow Jones Islamic Market Index
Website
www.ambg.com.my
Principal Risk
- market risk
- currency risk
- country risk
- political risk
- regulatory risk
- securities risk
Maximum Fund Size
200 Million units (equivalent to RM 200 Million)
Entry Charge
Between 4% to 5%
Exit Charge
Nil
Initial Offer Period (as of 21st April 2006)
Selling Price (inclusive sales charge of 5% of NAV): RM 1.00
Buying Price: RM 0.9524
Net Asset Value per unit: RM 0.9524
You might want to read these too...
- Direct Islamic Fund Investment
- New Fund: Prudential's Global Basics Fund
- 2 New Islamic Funds from Public Mutual
- Public Islamic Select Bond Fund
- PB Asean Dividend & Islamic Cash Fund
- Issuance of Sukuk Bank Negara Malaysia
- Public Mutual to Increase Fund Size
- Public Islamic Asia Dividend Fund
