Principal Asset Management launches Shariah-compliant fund for APAC

KUALA LUMPUR, February 8, 2021: Principal Asset Management Berhad launched a Shariah-compliant fund that Spain’s to provide handsome quarterly dividends to middle and small income groups in the Asia Pacific region, excluding Japan. The large domestic economies in the region, largely driven by technology, offer the scope for more expansive capital investment and consumption than most developed economies, the company believes.

Named the Principal Islamic Asia Pacific Dynamic Income and Growth Fund, it was launched on 2 February 2021. It will provide quarterly income by tapping into the potent opportunities in the region it covers. The fund would also tap into the largest middle class population in the world while providing a way to stabilise the economies as they emerge from the shocker of the covid pandemic. The conditions in the region, says the company, are conducive for investors to have a diversified portfolio. 

The Asia Pacific region offers attractive growth value and diversification for investment portfolios, believes Munirah Khairuddin, CEO of Principal Asset Management. “The Fund provides investors with medium to long term investment horizon an opportunity to capitalise on the region’s strong potential upside. As one of the largest Shariah-compliant asset managers in the world and a leader in the market, Principal takes stock of our investors’ sentiment and appetite as we continue to push ourselves ahead of the curve,” she said. 

Dato’ Paduka Syed Mashafuddin Syed Badarudin, CEO of Principal Islamic Asset Management added, “Shariah-compliant solutions are in the middle of a unique juncture where we are witnessing sustained resilience and growth opportunities which translate to an upbeat outlook and strong prospects. With the increasing demand for Shariah-compliant outcome-oriented solutions, coupled with the bridging of value investing that addresses ESG and weathering market volatility, it is an exciting period as we share our offerings and strategies that discern quality and manages risk”. He strongly believes that investors would benefit significantly from the depth of products and capabilities Principal has to offer. 

The company claims that the Fund will help customers earn above average dividends as compared to other similar investment opportunities available. They wish say it provides investors a wider range to select from. Designed as a Shariah-compliant Feeder Fund, the Fund will invest in the Islamic Asia Pacific Dynamic Income and Growth Fund which is registered in Dublin, Ireland under Principal Islamic Asset Management’s Undertaking for Collective Investment in Transferable Securities (UCITS) platform.

Principal already has a very successful program in the category called Asia Pacific Dynamic Income Fund that has an award-winning track record and a 20.33% year-to-date performance. Following the same path, the newly launched fund targets to achieve positive returns over a rolling period of three years. Confident of its ability to provide good services through its highly capable investment team with global experience managing it, the company is offering the new fund in three share classes – Class MYR, Class SGD, and Class USD. The classes will have an initial offer price of MYR 0.2500, SGD 0.2500 and USD 0.2500 per unit, respectively.