Eastspring Investments Berhad launches Islamic equity income fund

April 8, 2019

KUALA LUMPUR – Eastspring Investments Berhad today announced the launching of their Syariah-compliant equity fund (Eastspring Investments Islamic Equity Income Fund) or known as “the Fund”.

The Fund is meant to provide a stable income stream with medium to long-term capital growth.

The initial offer period for the Fund runs for a period of twenty-one (21) days commencing from April 8 until its closing on April 28, this year.

The chief executive officer of Eastspring Investments Berhad, Raymond Tang told that the units of the Fund were priced at RM0.50 per unit during its initial offer period, thereafter pricing is based on the Fund’s Net Asset Value (“NAV”) which would fluctuate based on market movements.

“The minimum initial investment is RM1,000 and it  is available through Eastspring Investments Berhad (“Eastspring”) and its authorised distributors.
“The Fund was launched to meet the demands of investors with the appetite for medium to long-term equity income funds,” he said.

Award-winning investment team: The Fund will be managed by Eastspring’s award-winning equity investment team who are experienced in managing Islamic and equity income funds.

Eastspring Investment Berhad won 13 awards at the Lipper Fund Awards from Refinitiv 2019[1]. The funds recognised included their Shariah-compliant and equity income offerings.
“We have experienced fund managers and analysts who are very passionate about equity investing. Eastspring is a valuation and research-driven house with good fundamental stock-picking skills and a disciplined portfolio construction process.

“We believe our investment philosophy can potentially generate consistent and attractive returns for our clients over the long run.  The team’s vast experience and strong drive enables us to add value during periods of market volatility,” said Tang.

Potential for dividend income and growth: Although the Fund will be a Shariah-compliant version of the company’s equity income fund, the fund managers will adopt the same investment philosophy of stock picking.

While, the chief investment officer of Eastspring Investments Berhad, Doreen Choo told that they would generally pick companies with good quality management, which were able to deliver stable earnings growth and have 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.

“We are optimistic about Malaysia’s long-term market outlook, but remain 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 US-China trade war, US monetary policies and volatilities in commodities.

“As such, we will focus on companies with strong fundamentals and good track record of adapting well even in challenging environments,” said Choo. -Bernama

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