Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today launched the CIMB Islamic Global Commodities Equity Fund (“the Fund”), a Shariah-compliant fund that provides investors broad investment opportunities in global commodities.

Speaking at the press conference today, J. Campbell Tupling, Chief Executive Officer of CIMB-Principal, said: “The Fund will provide exposure to stocks that will benefit from the strong and rising demand for natural resources and basic materials namely energy, metals, agriculture and renewable energy. The demand for these global commodities is driven by the current “supercycle”, an observable and prolonged trend which has a significant impact on businesses and the economy.”

Tupling continued that current trends include population growth, industrialisation, urbanisation and clean energy, which are triggering a ripple effect on the commodities sector.  By 2050, the world’s population is expected to rise from 6.5 billion to 9.1 billion and the E7 emerging economies (the BRIC economies of Brazil, Russia, India and China, plus Indonesia, Mexico and Turkey) are expected to become approximately 50% larger than the current G7 economies (Canada, France, Germany, Italy, Japan, UK and US). The urban population in the East Asia/Pacific are also likely to increase by 1.1 billion in the next 20 years.¹ 

“As populations increase and lifestyles change, there is a permanent shift in demand for more food, efficient energy resources and better infrastructure. Therefore, supply needs to find ways to keep up. Consequently, it will also drive the adoption of alternative energy sources to mitigate increasing pollution,” explained Tupling.

Meanwhile, Tan Beng Wah, Chief Executive Officer of CIMB Wealth Advisors Berhad (CWA) said: “The nature of the Fund makes it simpler for investors to diversify their portfolio further as it invests in companies along the entire commodity value chain, ranging from companies that are involved in project financing to production and maintenance.”

The Fund, which will be primarily distributed by CWA (formerly known as CIMB Wealth Advisors), appeals to all investors, especially those who wish to observe Shariah guidelines in their investments. Tupling added that investors can do so with confidence as a Shariah-compliant fund shows no significant difference in performance as compared to a conventional fund over the long-term.

The Fund offers potential capital growth over the medium to long term, investing at least 70% of its net asset value (NAV) in Shariah-compliant equities and Shariah-compliant equity related securities of companies that are primarily engaged in activities related to commodities. However, it may also invest in Shariah-compliant derivatives such as commodity exchange-traded funds and commodity indexes if it presents a more compelling alternative to equities, but subject to a maximum of 28% of the Fund’s NAV.

The CIMB Islamic Global Commodites Equity Fund has an approved fund size of 600 million units, with an initial offer price of RM0.2500 per unit. It is also distributed by CIMB Bank, CIMB Private Banking and CIMB Investment Bank with a minimum initial investment of RM1,000.

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Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today launched the CIMB-Principal China Recovery Structured Fund - that takes advantage of China’s road to economic recovery. The Fund aims to provide investors with regular income over the tenure of the Fund and may potentially provide higher returns than the current Fixed Deposit rate.

J. Campbell Tupling, Chief Executive Officer of CIMB-Principal, stated: “Sentiments in China are slowly improving with its USD585 billion stimulus plan. Positive developments are visible in major sectors encompassing infrastructure, housing, innovation, health and education that will enable China to charter a high growth potential.  Investors will then have the opportunity to capture the market exposure through this Fund. The Fund will receive potential annual dividend payments linked to the performance of China equities as represented by the Dynamic China Index. We will be able to select and lock-in the investments at the lowest investment entry point to enhance potential gains after a 6-month observation. The Fund’s structure and low investment cost will  appeal to investors looking for a regular income stream and prefer not to take much risks given the current global economic outlook.”

The 5-year close-ended Fund will invest at least 95% of the Fund’s Net Asset Value (NAV) into China Recovery Structured Product, while up to 5% of the remaining Fund’s NAV will be invested in liquid assets for liquidity purposes.

Tupling explained that the Fund rides on China’s economic recovery and comes with three key features. Firstly, the Fund offers capital protection if held to maturity. Secondly, it reduces investors’ dilemma of when to enter the market, where the Fund will automatically select the lowest monthly entry level based on the lowest entry point observed in the initial 6 months. Lastly, the Fund gives investors the option to lock-in and cash out annual profit to eliminate point risk at maturity.
 
“Investors can expect a better outlook for China this year as the consensus view is that China will be one of the first economies to recover. The CIMB-Principal China Recovery Structured Fund is open for investment for 45 days and closes on 3 June 2009,” Tupling added.

The CIMB-Principal China Recovery Structured Fund has an approved fund size of 300 million units, and an initial offer price of RM0.50 per unit. It is distributed by CIMB Bank, CIMB Private Banking, CIMB Investment Bank, and CIMB Wealth Advisors.

More details about this funds you can click here

Article Source : CIMB Wealth Advisors Website