RETAIL FUNDS | Cesar Tordesillas, China

CIMB's Islamic fund to provide exposure to China

CIMB-Principal Asset Management Berhad is banking on the huge Chinese market for the success of its new Shariah-compliant product. Called the CIMB Islamic Greater China Equity Fund, it offers an investment that gives exposure in the Greater China region, namely China, Hong Kong and Taiwan economies but is Shariah-compliant as well. This open-ended Fund will invest up to 98 percent of the Fund’s Net Asset Value into Shariah-compliant equities and Shariah-compliant equity related securities of companies based in the Greater China region, with the remaining in Shariah-compliant liquid assets.

“The CIMB Islamic Greater China Equity Fund is highly anticipated by many of our existing and potential clients. They look forward to capitalising on this opportunity and adding this new Fund to their current portfolio as part of the regional equity portfolio – an important segment for any investor in this current market,” said Mr Tan Beng Wah, Chief Executive Officer of CIMB Wealth Advisors.

“Over the long-term, there is no significant difference in performance between a Shariah-compliant and a conventional fund. Therefore investors who diligently wish to observe Shariah guidelines in their investments can do so with confidence that investing the Islamic way will not hamper potential fund performance,” explained J. Campbell Tupling, Chief Executive Officer of CIMB-Principal.

The CIMB Islamic Greater China Equity Fund has an approved fund size of 600 million units, with an initial offer price of US$0.0719 per unit. The Fund is also distributed by CIMB Bank, CIMB Private Banking and CIMB Investment Bank with a minimum initial investment of US$287.6.

“Our investment team will look at high growth sectors such as industrials and consumers, which are expected to benefit from the economy’s recovery and the US$585 billion Chinese government stimulus package. Various government initiatives such as industrial consolidation, government shopping voucher programme, nationwide insurance and medical care network put in place has gradually increased consumer confidence. Therefore, we believe that this is an opportune time for investors to participate in the growth of the market with our new Fund,” stated Tupling.

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