CIMB-Principal launches fund

KUALA LUMPUR: CIMB-Principal Asset Management Bhd has launched the CIMB-Principal Asia Pacific Dynamic Growth Fund, which aims to achieve potential capital appreciation over the medium to long term, by investing in Asia-Pacific, the world’s fastest growing region.

Its chief executive officer Munirah Khairuddin said the pace of change was accelerating in Asia-Pacific, and equities in this region have matured significantly while other parts of the world are still struggling to find growth.

“Asia Pacific presents significant opportunities due to its growing population and high urbanisation rate,” she said, adding that the urban middle class has created an increase in private consumption and infrastructure spending.

The new fund aims to achieve a target return of 9% over the medium to long term by investing in companies with above average growth potential compared to its industry peers or the overall market.

It is suitable for investors who are willing to take moderate risks, she said.

“The fund adopts a flexible and dynamic asset allocation strategy, where under general market conditions, we will invest in equities, while under adverse market conditions, the fund may invest all or a substantial portion of its assets in debt instruments, money market instruments and/or deposits to achieve the investment objective,” she said.

Munirah said the company was expecting a RM500mil subscription of the open-ended fund by the end of 2016.

It is established as a multiple currency share classes to offer investors the options to invest using not just Malaysian ringgit, but also the Australian dollar, Singapore dollar or the US dollar.

The Fund is offered in Malaysia for subscription with a minimum initial investment of RM1,000, SG$1,000, US$1,000, or AU$1,000 respectively.

Investors can purchase the fund from unit trust consultants of CIMB-Principal (CWA), CIMB Bank, Alliance Bank and soon, other leading participating banks.