New Fund: AmAsia Pacific Leisure Dividend

Do you like to go on a holiday spree in Asia Pacific region? If yes, then this fund may suit your appetite. On top of that, you can expect some dividends from this new fund launched by AmMutual. Please read on.

The fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term by investing in equities and equity-related securities of leisure industry across Asia Pacific region.

To achieve its objective, the fund seeks will be investing 70%-98% in a diversified portfolio of equities related to leisure industry. Who were they? They may include issuers engaged in the design, production and distribution of products and services related to leisure industry. These companies operate in the following sectors within the leisure industry such as hotel, retail, publishing, advertising, beverages, audio/video, broadcasting radio/television, cable and satellite, motion picture, recreation services and entertainment, toy, gaming and tobacco.

Where were they?

These companies are listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. However, the fund will not invest into Japan.

Investment Strategy...

The investment manager combines top-down asset allocation process with a bottom-up security selection process. The asset allocation will be reviewed periodically depending on the macroeconomic, industry trends, respective country's economic and stock market outlook. The asset allocation decision is made after a review of macroeconomic trends in Asia Pacific economies. As for bottom-up security selection, the investment manager will focus on undervalued companies which demonstrate sound corporate fundamentals, which are expected to provide dividends yield above market average, and sustainable dividend yield on a medium to long term basis. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and price to book multiples.

Click here to download prospectus

Source: AmMutual

New Fund: AmTactical Bond

Still remember one fund called AmDynamic Bond fund? If yes, you definitely knew the superb performance of that bond fund, which had became the flagship fund for AmMutual for past years. However, it was sad that, since few months ago, no more subscription was being allowed for AmDynamic Bond fund because it has reached the maximum limit set by regulators. In other words, too hot the demand for that fund. Then how?

Because of that reason, AmMutual is proud to launch another new fund, AmTactical Bond fund, which was managed by using the same strategy, but with a little bit more flexibility. The Fund aims to provide income and to a lesser extent capital appreciation by investing primarily in bonds.

How Flexible is it?

The Fund seeks to achieve its objective by investing primarily in sovereign, quasi-sovereign and corporate bonds including convertible bonds. There is NO minimum rating for a security purchased or held by the Fund.

To construct the portfolio of the Fund, the Investment Manager will analyse the general economic and market conditions. The Investment Manager will also analyse and compare securities in terms of expected returns against assumed risk by analyzing credit rating and duration of the securities, where the Investment Manager will select securities that will deliver better returns for a given level of risk. In addition, the Investment Manager may also consider securities with a more favorable or improving credit or industry outlook that provide potential capital appreciation. The Fund’s investment is subject to active tactical duration management, where duration of the Fund will be monitored and modified according to interest rate outlook without any portfolio maturity limitation.

Asset Allocation

• 70% - 98% invested in bonds;
• 0% - 28% invested in other permitted investments; and
• a minimum of 2% will be invested in Liquid Assets.

AmTactical Bond is suitable for investors who:

• are willing to assume risks associated with investing in securities with long duration (i.e. there will be no portfolio maturity limitation) and low credit ratings (i.e. there will be no minimum rating for the securities purchased or held by the Fund); and
• have an investment horizon of more than three (3) years.

Click here to download the prospectus

Source: AmMutual

New Fund: AmIncome Flexi

In view of current uncertainties still lingering around investment universe, bond was considered as one of the asset class that most investors seeks to preserved their asset value, albeit lower risk. Just as the name of the fund, it's a flexible bond fund which has an interesting early repayment features. Let's have a look.

The Fund is a 3-year close-ended bond fund that aims to provide annual income distribution throughout the duration of the fund. To achieve the investment objective, the fund intends to invest its NAV in a portfolio of domestic and/or foreign sovereign issued bonds and corporate bonds.

• Domestic bonds:
  --> minimum credit rating will be “A” rated by RAM or MARC’s equivalent. 
• Foreign bonds:
  --> minimum credit rating will be “A” rated by their respective local credit rating agencies which denotes strong capacity to meet financial commitments and/or “BB” rated by S&P or Moody’s equivalent at the time of investment.

As this is a close-ended fund, the Investment Manager will purchase bonds which will be held until its respective maturity. These bonds will generally have shorter or similar maturity tenure to the Fund’s maturity. The Fund employs a flexible investment strategy as follows:-

1. The Investment Manager will not actively adopt a trading strategy unless there are changes or expected changes in interest rates resulting in bond price changes, for the purpose of maximizing returns of the Fund over the Fund’s tenure of three (3) years;
2. The Investment Manager may also at its discretion dispose off a bond to mitigate currency risk for the benefit of the Fund; and
3. The Investment Manager may also opt to dispose off a bond when it has achieved at least 15% cumulative return before its maturity, and return the proceeds of the bond (which includes principal and realised gains such as coupons received, capital gains and currency gains) to the investors.

In the event of a credit downgrade, the Investment Manager may liquidate the particular bond affected if the Investment Manager at its discretion feels that there is a likelihood of credit default. Changes in credit rating will have no impact upon the price of the bond at maturity. However, if the Investment Manager chooses to sell the bond prior to the bond’s maturity, it may result in a capital loss and this will be borne by investors of the Fund. A credit downgrade means that credit risk is increased but does not constitute default.

The Fund may be investing in countries where the regulatory authority is a member of the International Organisation of Securities Commission (IOSCO) which include but not limited to Malaysia, Australia, New Zealand, Korea, Hong Kong, Singapore, Philippines, Indonesia and Thailand. As the Fund may invest in foreign currencies denominated bond, the Investment Manager may use derivatives for currency hedging purpose.

Early Repayment Mechanism?

When a bond held in the Fund has achieved 15% cumulative return at any time before its maturity, the Investment Manager may sell down the bond and realize the gains. The proceeds of the bond (which includes principal and realised gains such as coupons received, capital gains and currency gains) will be returned to the investors. In this respect, NAV of the Fund will be reduced accordingly and the units of the Fund will be adjusted according to the proportion of that bond in the Fund. This will result in Unit Holders holding lesser units after Early Repayment. In the case of Early Repayment, there will be no adjustments to NAV per unit of the Fund.

The Fund is suitable for investors who seek:

• an investment that provides regular income and potentially higher returns than the 1-year AmBank (M) Berhad Conventional Fixed Deposit Rate (fixed as at Commencement Date); and
• an investment that provides lower risk than equities.

Source: AmMutual

fff

New Fund: AmAdvantage Asia Pacific ex Japan Dividend

Wanted to diversify your investment portfolio especially on dividend based investments? You may look into this newly launched fund by AmMutual named AmAdvantage Asia Pacific ex-Japan Dividend Fund, a fund managed by AmInvestment Services Berhad.

The Fund is a feeder fund, which will invest into the  HSBC Global Investment Funds  – Asia Pacific ex Japan Equity High Dividend (the “Target Fund”), a sub-fund of the  HSBC Global Investment Funds domiciled in Luxembourg. The Fund seeks to provide income and long term capital growth by investing in the Target Fund which has an investment focus on Asia Pacific ex Japan equities.

The Fund seeks to achieve its investment objective by investing a minimum of 95% of the Fund’s NAV in the distribution share class in the HSBC Global Investment Funds – Asia Pacific ex Japan Equity High Dividend at all times. This implies that the Fund has a passive strategy.

More about the Target Fund
HSBC GLOBAL INVESTMENT FUNDS – ASIA PACIFIC EX JAPAN EQUITY HIGH DIVIDEND

The Target Fund was launched on 5th November 2004 and the total fund size of the Target Fund is  USD  170.78  million as at 31st December  2011. The Target Fund is regulated by Luxembourg Supervisory Authority, the Commission de Surveillance du Secteur Financier. 

Other than that, what's more important than the fund's past performance?

AmAdvantage Asia Pacific ex Japan Dividend is suitable for investors who seek:

• regular income in their investment; 
• long term capital growth on their investment; 
• participation in the upside potential of the Asia Pacific ex Japan market; and 
• medium to high risk investment vehicle. 

Source: AmMutual
Click here to download the fund prospectus

New Fund: AmConsumer Select - Capital Protected

AmInvestment Bank is launching a new capital-protected fund and it is optimistic of a good take-up rate for this RM100mil new fund. According to its CEO, the launch of the fund is timely in view of the current macroeconomic uncertainties. Since it is capital protected, the fund offers a safe haven for risk-averse investors looking to hedge against the uncertainty in the global market, she adds.

The Fund is a close-ended fund which aims to provide regular income with an investment horizon of 2.5 years (30 months) whilst providing capital protection on Maturity Date. The Fund seeks to achieve its objective by investing in ZNIDs and/or MGS and an over-the-counter option linked to the price movement of a basket of five (5) consumer related stocks.

For the purpose of the Fund, consumer related stocks refer to stocks of companies that produce products/services that are consumed by individuals. Selection of consumer related stocks is based on fundamental strength of the companies through internal research and brands that the Manager considers to be widely known among investors.

The Strategy...

Generally, the Fund will adopt a two-fold strategy to achieve its objective, i.e.

1. Capital protection* from fixed income portion
   At the Fund’s commencement, a minimum of 85% of the Fund’s NAV will be invested in 2.5-year ZNIDs and/or MGS with shorter or similar maturity tenure to the Fund’s maturity, which upon maturity of the Fund will achieve an amount equivalent to 100% of investor’s initial capital (which includes entry charge payable by investors). A maximum of 5% of the Fund’s NAV will be maintained in cash and/or money market instruments for liquidity purposes.
   
   
   
2. Fund’s return from option portion
   At the Fund’s commencement, up to 10% of the Fund’s NAV will be used to purchase a 2.5-year USD denominated option with an option counter-party, which is a financial institution carrying a minimum long-term rating of “A” by S&P or the equivalent rating by any other global rating agency. The option provides exposure which is linked to the price movement of a basket of five (5) consumer related stocks.

At the end of each quarter, if the closing price of each of the stock is at or above its respective initial level on any day within the quarter, the option counter-party pays a conditional coupon. The income distribution (if any) will however be paid half yearly to investors.

The basket of five (5) consumer related stocks (indicative selection only) currently identified as

follows:

If the Coupon Payout Condition is met at any quarter, the coupon payout from the option

counterparty is calculated as follows:

Coupon (RM) = (Notional Amount / USD/RMInitial) x coupon rate (settled in USD) x

USD/RMEnd

• “USD/RMInitial” refers to the USD/RM exchange rate for the determination of the Notional Amount in USD as at Commencement Date.
• “USD/RMEnd” refers to the actual USD/RM exchange rate for conversion of the coupon (received by the Fund) from USD to RM.

* Investors are advised that the Fund is not a guaranteed fund. Capital protection is provided through investments in ZNIDs and/or MGS and not by a guarantee. Consequently, the return of capital is SUBJECT TO the credit/default risk of the issuers of the ZNIDs and/or MGS and may result in losses.

Source: AmMutual

New Fund: AmDynamic Allocator

Another new fund launched by AmMutual in a short period of time (barely few days), AmDynamic Allocator aims to achieve capital growth over the Medium to Long Term and at the same time provide income by investing primarily in collective investment schemes. This is a Fund-of-Funds, which means the fund is comprise of multiple funds.

The Fund will be managed with the aim of achieving positive investment returns over the Medium to Long Term regardless of market conditions. To achieve the investment objective, the Investment Manager applies a strategy that seeks to generate returns through investments in Collective Investment Schemes (CIS), which has exposure to various asset classes including but not limited to equity, fixed income securities and money market instruments. There will be no cross-holding between the Fund and CIS.

More about Investment Strategy

In selecting the asset classes for the Fund, the Investment Manager will adopt an active asset allocation process. The Investment Manager will first review the macroeconomic trends in the global and local equity markets. Under general market conditions, the Fund’s investment will be tilted towards equities. When the Investment Manager believes that the equity markets are overvalued, experiencing excessive volatility or expected prolonged declines, the Fund may invest a substantial portion of its assets in fixed income securities and/or money market CIS to achieve the Fund’s investment objective in bearish or non-performing equity markets.

Once the asset allocation has been decided, the Investment Manager will then select CIS to fit the asset classes. In evaluating the suitability of a CIS for investment, the Investment Manager will, amongst other factors, review the track record, investment objective, investment policies and strategies, fund performance, income distribution policy and cost factors of the CIS. The Investment Manager will review the asset allocation of the Fund at least on a monthly basis. The Fund intends to ONLY invest in CIS that are managed by AmInvestment Services Berhad.

The Fund is suitable for investors who:

• wish to have capital growth with yearly income;

• have a Medium to Long Term investment horizon; and

• wish to invest in a fund that potentially gives higher return than fixed deposit rates.

Source: Fund Prospectus

New Fund: AmAsia Pacific Equity Income

If you think that Asia Pacific will remain the main engine growth driver of world economy, then you should look into this fund launched by AmMutual. The Fund is a feeder fund, which will invest into the BlackRock Global Funds-Asia Pacific Equity Income Fund (the “Target Fund”), a sub-fund of the BlackRock Global Funds (BGF) domiciled in Luxembourg.

The Fund seeks to provide income and to a lesser extent Long Term capital growth by investing in the Target Fund which has an investment focus on Asia Pacific ex-Japan equities. The Fund seeks to achieve its investment objective by investing a minimum of 95% of the Fund’s NAV in the BlackRock Global Funds-Asia Pacific Equity Income Fund at all times. This implies that this Fund has a passive strategy.

BLACKROCK GLOBAL FUNDS (BGF)

BlackRock Global Funds (“the Company”) is incorporated in Luxembourg as an open-ended investment company under the laws of the Grand Duchy of Luxembourg and qualifies as a Part I UCITS (Undertaking for Collective Investment in Transferable Securities). 

The Company has adopted an “umbrella structure”, which allows it to offer investors within the same investment vehicle, a choice of investments in one or more sub-funds (each “sub-fund” and collectively the “sub-funds”) in respect of which a separate portfolio of investments is held, which are distinguished by their specific investment objectives, policies and/or currency of denomination.

The Target Fund is a sub-fund under the Company. The Target Fund was launched on 18 September 2009 and the total fund size of the Target Fund was USD64.50 million as at 29 April 2011. The Target Fund is regulated by Luxembourg Supervisory Authority, the Commission de Surveillance du Secteur Financier (“CSSF”).

BGF-ASIA PACIFIC EQUITY INCOME FUND

The Target Fund seeks an above average income from its equity investments without sacrificing long term capital growth. The Target Fund invests at least 70% of its total assets in equity securities of companies domiciled in, or exercising the predominant part of their economic activity in the Asia Pacific region excluding Japan. Predominant part of the economic activity generally means that a major portion of a company’s business (which includes but is not limited to the company’s sales, earnings or assets) is derived from or located in the Asia Pacific region excluding Japan relative to that particular company’s business derived from or located in other regions. The remaining 30% of the total assets may be invested in financial instruments of companies or issuers of any size in any sector of the economy globally.

AmAsia Pacific Equity Income is suitable for investors who seek:

• regular income from their investment;
• Long Term capital growth on their investment;
• participation in the upside potential of the Asia Pacific ex-Japan market; and
• medium to high risk investment vehicle.

Source: Fund Prospectus

New Fund: AmAsia Pacific REITs

Despite the current high level of share market globally, especially in Asia, there is still hanging fruits waiting for investor to grab. One of it was REITs, which lags behind its share market peers in terms of valuation. With this, AmMutual launched their latest fund which focuses on REITs investment on 18th July 2011.

The fund aims to provide regular income and to a lesser extent capital appreciation by investing in REITs. To achieve the investment objective, 70% to 98% of the fund's NAV will be invested in REITs listed in Asia Pacific region, which includes but not limited to Australia, Hong Kong, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. In addition to country diversification, the Fund will also diversify into different REITs sectors such as residential, commercial and industrial. The fund will hold between 2% to 30% of its NAV in liquid assets.

Strategy Employed...

The manager employs an active allocation strategy, which means the asset allocation decisions will be made after reviewing the macroeconomic trends and REITs market outlook of the respective countries in the Asia Pacifc region. Among the criteria are:

• track record
• investment portfolio
• financial status
• income distribution policy
• cost factors of REIT

Any distribution?

Subject to availability of income, distribution is paid at least once a year.

AmAsia Pacific REITs is suitable for investors who:

• wish to have investment exposure through a diversified portfolio of REITs in the Asia Pacific region. Portfolio diversification is obtained by investing in REITs of various sub-sectors (for example, residential, commercial, industrial within the REITs sector) listed in various countries; and
• seek regular income and, to a lesser extent capital appreciation over the Medium to Long Term.

Source: AmMutual and the Fund's prospectus

Click here to download the fund's prospectus

New Fund: AmASEAN Equity Fund

If Singapore and Malaysia market only is not enough to feed your appetite, then you may consider the whole ASEAN markets. ASEAN was being targeted by international investors again since the 1997 Asian financial crisis given its high growth rates and more stable economy.

AmASEAN equity fund seeks to provide capital growth over the medium-to-long term by investing 70% to 98% of the fund's NAV will be invested in a diversified portfolio of equities and equity-related securities which are Shariah Compliant, issued by companies listed in the ASEAN countries, and including securities listed in non-ASEAN countries but with their core business in the ASEAN markets.

Core business in this respect means the major business of the company, where majority of the company's revenue (at least 50%) is derived from the ASEAN countries. ASEAN member countries comprise of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Investment Criteria or Strategy:

• Above average growth potential
• Undervalued stocks relative to its earnings growth potential and/or its fair value
• Combines top-down asset and sector allocation process with a bottom-up stock selection process
• Active asset allocation strategy depending upon the equity market expectations
• Stock selection based on improving fundamentals and growth at reasonable valuations

Source: AmMutual

Click here to download prospectus

New Fund: AmAdvantage Brazil

If you are a football fans, sure you know at least a bit about Brazil - the country of football. Almost everyone in Brazil knows football, male or female. Brazil is going to host the FIFA World Cup. But, did you know that Brazil is one of the top emerging markets in the world currently. BRIC, which comprise of Brazil, Russia, India and China is the main growth engine of the world now. Do you want to invest in the mighty Brazil? This is the only fund available in the market that invest directly and solely in Brazil. Let's check this out.

AmAdvantage Brazil fund is managed by AmInvestment Services Berhad. This is a feeder fund, which will invest a minimum of 95% of Fund's NAV into the HSBC Global Investment Funds-Brazil Equity (Target Fund), a sub-fund of the HSBC Global Investment Funds domiciled in Luxembourg.

The fund is suitable for an investor seeking:

• Long Term capital growth on their investment,
• Participation in the upside potential of the Brazilian market,
• Medium to High risk investment vehicle.

The Target Fund:

It was launched on 22 December 2004 and the total fund size is USD 3.08billion as at 30 October 2010.

The Investment Manager will not, in response to adverse market and other conditions, take temporary defensive positions that are inconsistent with the Fund's investment strategy. This implies that this is a passive fund which mirrors the performance of the Target Fund.

This means that any temporary defensive positions taken in response to adverse market conditions, if any, will be taken at the Target Fund level.

As such, investors need to monitor the Fund's performance to exercise their own discretion on whether to redeem from the Fund.

Download prospectus

 

Source: AmMutual

New Fund: AmAustralia Fund

Looking good on Australia, AmMutual is launching a new fund to capture the potential of Australia. The fund seeks to provide income and long-term capital growth by investing in Australian equities and Australian dollar fixed income securities.

Note: The fund's main focus is on income and to a lesser extent, capital growth.

"Australia's economy is resilient and has posted an impressive positive gross domestic product growth over the last 18 years, even outperforming all other advanced economies during the global financial crisis," said Datin Maznah Mahbob, CEO of Funds Management Division, AmInvestment Bank Group. (Business Times)

Investment Strategy

The fund generally maintains equity exposures within a range of 50% to 100% of the fund's NAV. Then, the balance may be invested in Australian dollar fixed income securities and liquid assets. 

It will derive its income primarily through investments in relatively higher paying dividend stocks and bonds. However, it may also invest in growth stocks to participate in an actual or anticipated stock market rally.

As such, Credit Suisse AG, Singapore Branch has been appointed as the Sub-Investment Manager to manage the fund's Australian portfolio.

Process & Selection of Equity

Process & Selection of Fixed Income Securities

Investor's Profile

1. Income and Long-term capital growth on their investments,
2. Long-term investment horizon,
3. Participation in the upside potential of Australia

Key Data of the fund

Source: AmMutual

New Fund: AmConstant Multi Maturity

AmConstant Multi Maturity is a close-ended bond fund that seeks to provide regular income from 3 investment portfolios comprising of local and/or foreign bonds. These investment portfolios will mature respectively on the 3^rd, 4^th, and 5^th anniversary of the commencement date and scheduled Capital Repayment(s) will be made to the unitholders following the respective anniversary.

 
The fund intends to invest a minimum of 95% in a multitude of local and/or foreign bonds carrying a minimum "A" rating by RAM or MARC equivalent to "BBB" by S&P or Moody.

As this is a close ended bond fund, the fund adopts a buy and hold strategy whereby bonds purchased will be held until its respective maturity. At the maturity of these bonds, issuers of bonds held by the fund will be obligated to pay the face value provided there is no occurrence of credit default by issuer.

A downgrade in credit rating may result in additional credit risk assumed by the fund. The manager may choose to liquidate the bond prior to its maturity, if it is of an opinion for the benefit of the fund. By doing so, the manager may be subjecting the fund to a risk of capital loss, hence affecting the value of scheduled capital repayments.

AmConstant Multi Maturity is suitable for investors seeking:

• An investment that provides capital repayment on the 3^rd, 4^th and 5^th anniversary
  
• An investment that targets to distribute regular income
  
• Potentially higher returns than fixed deposits
  
• To participate in a scheme that provides lower risk than equities 

New Fund: AmCommodities Equity Fund

AmMutual sees potential investing in one of the hottest asset classes nowadays - Commodities.

Fundamental characteristic investing in commodity:

1. Commodities outperformed other asset class
2. Low correlation with traditional asset class
3. Commodities are usually used as an inflation hedge
4. Evergreen theme = Increasing Demand vs Diminishing Supply

Category          : Feeder Fund (Global equity)
Offering period : 19 July - 8 August 2010
Min investment : Rm1,000
Min top-up       : Rm 500
Sales charge     : 5%