Pub­lic Mu­tual launches Is­lamic small­cap fund

New Straits Times - - Business -

KUALA LUMPUR: Pub­lic Bank sub­sidiary Pub­lic Mu­tual Bhd has launched a new fund, PB Is­lamic Small­Cap Fund (PBISCF), which will in­vest mainly in syariah-com­pli­ant com­pa­nies with small mar­ket cap­i­tal­i­sa­tion in do­mes­tic and se­lected for­eign mar­kets.

The fund’s eq­uity ex­po­sure ranges be­tween 70 and 98 per cent of its net as­set value (NAV), while the bal­ance will be in­vested in sukuk and Is­lamic liq­uid as­sets.

“Given the po­ten­tially higher growth of small-cap stocks due to their smaller earn­ings base, PBISCF can be a valu­able ad­di­tion to a long-term growth port­fo­lio.

“In­vestors will also en­joy ex­po­sure to a wide ar­ray of sec­tors that are ex­pected to ben­e­fit from do­mes­tic growth,” said Pub­lic Mu­tual chief ex­ec­u­tive of­fi­cer Yeoh Kim Hong in a state­ment.

He said PBISCF also pro­vided prospects to di­ver­sify and hedge against cur­rency fluc­tu­a­tions as it might in­vest up to 25 per cent in Asian, the United States and Euro­pean mar­kets.

To mit­i­gate the mar­ket volatil­ity of small-cap stocks, PBISCF can in­vest up to 25 per cent of its NAV in syariah-com­pli­ant mi­dand large-cap com­pa­nies.

The ini­tial is­sue price for PBISCF is 25 sen per unit dur­ing the 21-day ini­tial of­fer pe­riod from Tues­day to April 17.

The min­i­mum ini­tial in­vest­ment for the fund is RM1,000 while the min­i­mum ad­di­tional in­vest­ment is RM100.

“In­vestors who pur­chase dur­ing the ini­tial of­fer pe­riod can en­joy a pro­mo­tional sales charge for as low as five per cent of the ini­tial is­sue price per unit. Terms and con­di­tions ap­ply,” Yeoh added.

Pub­lic Mu­tual is Malaysia’s largest pri­vate unit trust com­pany with more than 100 unit trust funds un­der its man­age­ment.

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