New Fund: Kenanga Asia Pacific Total Return

After merging with ING Funds Berhad, Kenanga Investors Berhad launched its first new fund of the enlarged family. In this uncertain global economic environment, how much return can a fund generated was the main concern for many investors. Want to get higher return? Then, we cannot runaway from higher volatility! Are there any balance in between?

Yes. To cater for such investors, this new fund aims to provide a compounded rate of return of at least 10% per annum over market cycle (5 years) by investing in a diversified portfolio of Asia Pacific equities.

3 Reasons WHY it benefits you:

Well... Unlike others, this fund DO NOT has any benchmark constraint. This allows flexibility in identifying and implementing the most optimum investment strategy. Picture below shows the differences between Absolute and Relative return:

Still not yet convinced? How about the proven track record?

Click here to download prospectus

Source: Kenanga Investors Bhd

New Fund: AmAsia Pacific REITs Plus

Do you remember the AmAsia Pacific REITs fund? I'm sure you have heard about it. Yes, backed by its success story, AmInvestment Management Bhd has launched a new version called AmAsia Pacific REITs Plus. The word "Plus" is used as a continuation of the AmAsia Pacific REITs and the fund may invest in listed equities in the real estate sector.

The fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term (at least 3 years) by investing in real estate investment trusts (REITs) and equities in the real estate sector.

What's the strategy?

Minimum 70% in REITs and a maximum of 29% in listed equities in real estate sector, which are in the Asia Pacific region. This is the asset allocation of the fund. Diversification in terms of country and different REITs sub-sectors (etc. residential, commercial and industrial) is expected.

An active allocation strategy will be employed by fund manager, based on macroeconomic trends and REITs market outlook of respective countries in Asia Pacific region. Meanwhile, bottom-up security selection strategy will be used for equities, with focus on undervalued companies.

Who is suitable for this fund?

• Those who wish to have investment exposure in real estate sector through a diversified portfolio of REITs and real estate equities in Asia Pacific region.
• Those seeking regular income and to a lesser extent capital appreciation over medium to long term

What's AmInvest aiming?

4% payout on yearly basis, which AmInvest said is achievable and is higher than fixed deposit rate offered by banks. AmInvest favors Australia, Singapore and Japan for REITs and China, Indonesia and Thailand for listed equities.

Click here to download the fund prospectus

OSK-UOB Dana KidSave

One of the most desired by an investor, is to achieve diversification in his or her portfolio and what better way to do so then by investing in a balanced fund. A balance in an investment portfolio is also fundamental to appease an investor in times of uncertainties and volatility. Such a balance can appeal to the investor of any age regardless of his or her objectives. Thus, with market uncertainties continuing to prevail over the Eurozone debt crisis and its contagion effect on the global economy, investors remain cautious with their investment choice, seeking to invest in low to moderate risk investments such as a balanced fund.

Hence, OSK-UOB offer you a Shariah-based fund with its balanced asset allocation strategy in equities and investments comprising sukuk, islamic money market instruments, deposits and collective investment schemes. The investment in equities will enjoy potential capital appreciation upswings while any downswings will be cushioned by its investments in the latter which are defensive in nature.

When making investments, the manager may invest up to 30% of NAV in foreign markets. The fund will invest in Shariah-compliant securities/instruments listed on or traded in Asia Pacific ex Japan markets, including Shariah-compliant securities / instruments of companies that are listed on or traded in non-Asia Pacific ex Japan markets (such as NYSE and LSE).

How about Sukuk ?

At lease BBB rating sukuk issued by Malaysian incorporated companies at the point of purchase by RAM Rating Services Bhd or equivalent rating agencies. Foreign sukuk issued by corporations and financial institutions must carry a rating of BB or higher by S&P or equivalent, whereas sukuk issued by supra-nationals, governments and their agencies need not be rated.

Click here to download prospectus

Source: OSK-UOB IM

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: 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: 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: PB Asia Emerging Growth Fund

Ignoring the volatile and not-so-positive market currently, Public Mutual Bhd launched 3 funds in a row on 6th Sept 2011 to fill investors appetite. They were PB Asia Emerging Growth Fund, PB Bond Fund, and PB Sukuk Fund. Here, we will be only highlighting the equity fund.

PB Asia Emerging Growth Fund seeks to achieve capital growth over the medium to long-term period by primarily investing in the securities of emerging small to medium-sized companies in domestic and regional markets. The fund generally maintains equity exposures within a range of 70% to 98% against its NAV. The balance of the fund's NAV may be invested in domestic and foreign fixed income securities and money market instruments.

Investment Strategy

Generally, companies with reasonable earnings growth prospect are selected. In identifying such companies, the fund relies on fundamental research where financial health, industry prospects, management quality and past track record of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

What else can the fund invest into?

• Equity linked Participation Notes (instruments designed to track designated securities)
• Listed warrants and options to enhance its returns
• Unlisted equities with attractive potential returns (which are expected to seek listing within 2 years)
• Futures contracts to hedge against market volatility

Click here to download the fund's prospectus

Source: Public Mutual website

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: Am-Mateen Asia Pacific Equity Fund

Launched on 5th May 2011, AmIslamic Funds Management Sdn Bhd presented to investors an opportunity to participate in the growing Asia Pacific region and also investing according to Shariah principles.

The Fund is a Shariah compliant equity fund that seeks to grow the value of investments over the medium to long term by investing in listed equities, equity related investments and other approved instruments across Asia Pacific (ex-Japan) that conforms to the Shariah investment guidelines.

Strategy

The investment style is active and focuses on strategic structuring of the portfolio. Meanwhile, the investment strategy is to select a core portfolio of low volatility and high dividend stocks with a 3 year time horizon coupled with a value approach to identify undervalued companies due to economic cycles which have been ignored relative to historical patterns.

However, the Manager may adopt temporary defensive strategy by maintaining 100% of the fund's NAV in liquid assets/cash weightings that may be inconsistent with the Fund's principal investment and asset allocation strategy.

The countries in which the Fund will be investing includes but are not limited to Malaysia, Hong Kong (including H-shares which refer to companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange), Korea, Pakistan, Philippines, Singapore, Taiwan, Thailand, Australia, Indonesia and New Zealand.

Asset Allocation

• 70% - 95% in equity and equity related instruments
• 5% - 30% in liquid assets

The fund is suitable for investors who:

• want investment exposure to Asia Pacifc (ex-Japan)
• seek steady growth-potential capital appreciation with lower volatility
• have medium to long term (3-5 years) investment horizon goals

Interestingly, the base currency of this fund is USD. As such, the initial offering price is USD 0.2000.

Source: Am-Mateen Asia Pacifc Equity fund prospectus

Click here to download the prospectus.

New Fund: CIMB-Principle Asia Pacific Dynamic Income Fund

On 25th April 2011, CIMB-Principle Asset Management Berhad launched the first Asia-Pacific fund for this year. The fund will invest in dividend-yielding stocks from the Asia Pacific (ex-Japan) region. To brings out the "dynamism" of the fund, a "color-changing dragon" was used. For sure, the company must has placed a lot of hard work to come out with the idea and I think it is a successful example which could attracts the attention of prospective investors.

"Investors are generally back to being bullish. After 2 very good years, valuations have recovered and Asia Pacific ex-Japan markets are up. Looking ahead, slower economic recovery of the developed markets will shift investors' appetite to Asia Pacific and this positive outlook will spur further stable investments. We are confident that markets will perform positively and this Fund will satisfy investors' revived sentiments and lingering concerns", said CEO of CIMB-Principal. 

Investment objective

The fund aims to provide regular income by investing primarily in the Asia Pacific ex Japan region and at the same time aims to achieve capital appreciation over the medium to long term.

How to achieve that?

Under general market conditions, the Fund's investment will focus on high dividend yielding equities of companies. In addition, the Fund may also invest in companies with good growth potential, which may adopt a strong dividend payout policy.

How about in not-so-good time?

The manager may take temporary defensive positions that may detract from the Fund's prescribed asset allocation when the manager believes that the equity markets that the Fund invests in are experiencing excessive circumstances, the Fund may invest all or a substantial portion of its assets in money market instruments and/or other fixed income investments. The manager may also utilize derivative instruments such as futures contracts to hedge the portfolio.

What is an active investment strategy that the Manager will adopt?

• combines top-down country and sector allocation with a bottom-up stock selection process
• reviewing the macroeconomic trends in Asia Pacific ex Japan economies
• analyzes the direction of GDP growth, interest rates, inflation, currencies and government policies to form the view and outlook for each country
• then, assessing their impact on corporate earnings and dividends and determine if there are any predictable trends

Investors profile:

• have a medium to long term investment horizon
• want a well diversified portfolio of Asia Pacifc ex Japan region
• willing to take moderate risks for potentially moderate capital returns over the long term
• seek regular income

What is the targeted return?

The fund is an equity income and growth fund with a target return of 8% per annum over the medium to long term. "We believe this is an achievable target even after the crisis in 2008. The demand for Asia Pacific ex-Japan equities is on the rise, with continued rapid urbanization and accompanying domestic consumption that have fueled high GDP growth in most Asia Pacific countries, which are higher than that of the US and Europe," added CEO.

Click here to download the prospectus

Source: CIMB-Principle website

New Fund: HwangDBS Select Dividend Fund

To further leveraging on the signature "Select" series of HwangDBS funds, HwangDBS Investment Management Berhad today added in HwangDBS Select Dividend Fund. Over the years, the Select series of funds have demonstrated strong performance, stability and consistency in meeting their objectives. Through this new fund, investors can access a diversified, yet focused portfolio of quality dividend yielding stocks in Malaysia and Asia-Pacific region.

The fund endeavors to provide a combination of regular income and capital growth over the medium to long term period. To achieve the primary objective of providing regular income, the fund intends to invest in high dividend yielding equities and equities that could potentially experience high dividend pay out growth. The fund's investments will be primarily focused in Malaysian equities with a minimum investment of 70% of the fund's NAV. The fund may also invest up to 30% of its NAV in Asia-Pacific region.

Two-part Approach?

1. Stable and High Dividend Yielding Equities
• Invest in already well recognized, stable and high dividend yielding equities
• Regular income
• Stability
2. The "next dividend leaders"?
• Identify and invest in equities which have the potential to become strong, quality dividend paying equities in the future
• Those that potentially to start a dividend payout policy
• Those that potentially increasing current dividends payout levels
• Dividend plus Capital appreciation
  

Income Distribution: Semi-Annually?

• Targeting 8% to 10% returns per annum with moderate levels of risks
• Semi-annual income distributions which give investors flexibility for cash flow needs plus potentially higher returns than Fixed Deposits or local Bonds

Source: HwangDBS Investment Management website

Click here to read the prospectus

New Fund: PB Asia Pacific Enterprises Fund

Looking good on the long-term growth potential Asia Pacific region, Public Bank is launching its equity fund, the PB Asia Pacific Enterprises Fund on March 8. Managed by Public Mutual, the fund will focus on companies with market capitalization of US$ 1 billion and above in domestic and Asia Pacific, through a diversified portfolio of companies.

By investing in mid-to-large corporations, investors would be better positioned to benefit from the resilient activities in the Asia Pacific region. These type of companies tend to perform better given their leading positions in their respective industries and established market shares, especially during challenging market conditions just as now.

What did Public Mutual's CEO said?

"After a strong rebound in 2009, global and regional equity markets continued their uptrend in 2010 amidst improving economic activities. Despite the recent spike in oil prices, regional equity markets are expected to remain underpinned by reasonable valuations and resilient economic growth prospects over the medium-to-long term."

Fund Features

• The fund may invest up to 98% in selected Asia Pacific markets
• Equity exposure: 75% - 98%
• Exclusively distributed by Public Bank
• Suitable for investors with aggressive risk-reward temperament

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