KUALA LUMPUR, April 8 — Eastspring Investments Bhd has launched its Eastspring Investments Islamic Equity Income Fund, a Shariah-compliant equity fund that seeks to provide a stable income stream with medium to long-term capital growth.
The fund is priced at 50 sen per unit during the initial offer period effective from today until April 28, 2019 and the minimum initial investment is RM1,000.
“Thereafter, pricing is based on its net asset value (NAV), which will fluctuate based on market movements,” Eastspring said in a statement, adding the fund would be managed by its award-winning equity investment team who are experienced in managing Islamic and equity income funds.
On the potential for dividend income and growth, Eastspring said the fund managers would adopt the same investment philosophy of stock picking, although the fund is a Shariah-compliant version of the company’s equity income fund.
Chief investment officer Doreen Choo said investment team would generally pick companies with good quality management, which were able to deliver stable earnings growth and had sustainable dividend yields backed by strong cash flow generation
“This strategy is intended to provide steady recurring income, as well as capital appreciation over the medium to longer term,” she said.
Moving forward, Choo said the company was optimistic about Malaysia’s long-term market outlook, but remained cautious over the near term given the many challenges.
“Volatility is the new norm, be it from domestic politics or policies, made more challenging by external noises from the ongoing United States (US)-China trade war, US monetary policies and volatility in the commodities market.
“As such, we will focus on companies with strong fundamentals and good track record of adapting well even in challenging environments,” she added. — Bernama
