Public Mutual launches Islamic smallcap fund
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.