Eastspring Investments Berhad last week announced the launch of the Eastspring Investments Islamic Small-cap Fund. This is a Shariah-compliant equity fund that provides another option to diversify into small-cap stocks which can potentially enhance portfolio returns in the long-run.
The initial offer period for the Fund runs for a period of twenty-one (21) days commencing from 25 May 2017 and closing on 14 June 2017.
Units of the Fund are priced at RM0.50 during its initial offer period after which its Net Asset Value (“NAV”) per unit will fluctuate based on market movements. The minimum initial investment (lump sum) is RM1,000. The Fund is available at Eastspring Investments Berhad and its authorised distributors.
The Fund was launched to meet the demands of investors with the appetite for long-term equity growth funds following the soft closure of the Eastspring Investments Small-cap Fund in order for the latter fund to continue to deliver good performance to the existing unit holders.
Although the Fund will be a Shariah-compliant version of the Company’s small-cap fund, the fund managers will adopt the same investment philosophy of stock picking.
“We will generally pick companies with good business model that has superior earnings growth. We like companies with solid management who is able to weather through the ups and downs of the business cycle. And these stocks should be accompanied by a strong balance sheet and fundamentally undervalued,” says Ms Tung Yin Wai, Head of Investment, Retail & Institutional Business (Domestic).
“We have experienced fund managers and analysts who are very passionate about small-cap investing. As fund managers, we derive a sense of satisfaction from being able to unearth these small-cap gems and help them to discover their true value. And to the companies that we are invested in, we are happy to be a shareholder and proud to be part of their success stories,” says Raymond Tang, Chief Executive Officer.
Potential for enhanced returns: The Fund seeks to provide capital appreciation by investing in small market capitalisation Shariah-compliant securities of companies with growth potential.
“Usually the small-cap universe is under researched and undeservingly traded below their intrinsic value. Fund managers like us use this opportunity to unearth these small-cap gems and exploit these pricing inefficiencies,” says Tung.