Pacific Mutual's Pacific Dana Dividen (PDD) » Meshio.com- a Malaysia Personal Finance Blog

Pacific Mutual’s Pacific Dana Dividen (PDD)

Posted on July 31st, 2007 in Malaysia Investment, Malaysia Islamic Finance, Malaysia Mutual Fund & Unit Trust, Malaysia Personal Finance |

The launching of Pacific Dana Dividend Fund last Thursday marks the 16th fund managed by Pacific Mutual Fund Berhad. I was only able to make it to the fund’s briefing organized by the company at Eastin Hotel yesterday night (I was out of town for almost a week).

And in the short 2-hours briefing, here’s the information I’ve to share with you. (For my investors and newsletter subscriber, you will receive a separate update ;-) )

Fund Category: Equity

Fund Type: Growth + Income

Characteristic: Fairly Aggressive

Investment Objective: Aims to provide capital growth and steady attractive income in the medium to long term by investing in a portfolio of equities that are paying or have the potential to pay attractive dividend and that comply with Syariah requirements.

Minimum and Maximum Levels of Asset Allocation:
Equity Allocation
Minimum- 70% of the fund’s NAV
Maximum- 100% of the fund’s NAV

Islamic debt allocation:
Maximum- 30% of the fund’s NAV

Maximum Service Charge: 5.0%

Annual Management Fee: 1.5% p.a. of the NAV of the Fund

Investment Modes:
(i) Cash Plan- Minimum Initial investment is RM 500 and Minimum Additional Investment is RM 100.
(ii) Saver’s Plan: Minimum 5-year period and a minimum monthly investment of RM 50.

Performance Benchmark: 50% in Syariah Index (KLSI) and 50% Dow Jones Islamic Market World Index.

And since this is a global fund, you cannot use EPF money for this Fund.

The Syariah Index

Here’s an excerpt from The Star Online

Pacific Dana Dividen aims to provide capital growth and steady income in the medium to long term.

Chief executive officer Michael Auyeung, in an interview, said: “The fund has a strategy of buying into syariah-compliant stocks with sustainable and high-dividend yields that offer attractive and potentially above-average income and capital gains.

“Its portfolio of syariah-compliant dividend stocks provides lower volatility as price fluctuations of these stocks tend to be lower than the general syariah-compliant equities.�?

“Dividend-style investing is tried and tested, through bull and bear markets.

“Our first dividend fund, Pacific Dividend Fund, has to-date generated total returns of 89% since its inception in November 2003 (compared with its benchmark, the KL Composite Index, of 73%) and about 19% compounded return annually,” he noted.