CIMB-Principal Firm on China to Lead Recovery

Kuala Lumpur: CIMB-Principal Asset Management Berhad’s (“CIMB-Principal”) confidence in China as the leading market to recover from the global economic turmoil is reflected with the launch of a second new fund for the year featuring the China theme - the CIMB Islamic Greater China Equity Fund.

Speaking at the press conference today, Chief Executive Officer of CIMB-Principal, J. Campbell Tupling, said: “Following the successful launch of our recent structured fund, which is also focused on China, we have noticed that investors are keen to invest in China for potential higher gains. Now that China could be on the cusp of a longer term recovery, we want to offer the opportunity for a different type of investment.”

“Our investment team will look at high growth sectors such as industrials and consumers, which are expected to benefit from the economy’s recovery and the USD585 billion Chinese government stimulus packages. Various government initiatives such as industrial consolidation, government shopping voucher programme, nationwide insurance and medical care network put in place has gradually increased consumer confidence. Therefore, we believe that this is an opportune time for investors to participate in the growth of the market with our new Fund.”

He urged investors to consider the new Fund, which will be primarily distributed by CIMB Wealth Advisors Berhad (“CIMB Wealth Advisors”).

Meanwhile, Chief Executive Officer of CIMB Wealth Advisors Mr Tan Beng Wah said: “The CIMB Islamic Greater China Equity Fund is highly anticipated by many of our existing and potential clients. They look forward to capitalising on this opportunity and adding this new Fund to their current portfolio as part of the regional equity portfolio – an important segment for any investor in this current market.”

The Fund offers an opportunity for investors who are on the look out for an investment that gives exposure in the Greater China region, namely China, Hong Kong and Taiwan economies but is Shariah-compliant as well. This open-ended Fund will invest up to 98% of the Fund’s Net Asset Value (NAV) into Shariah-compliant equities and Shariah-compliant equity related securities of companies based in the Greater China region, with the remaining in Shariah-compliant liquid assets.

“Over the long-term, there is no significant difference in performance between a Shariah-compliant and a conventional fund. Therefore investors who diligently wish to observe Shariah guidelines in their investments can do so with confidence that investing the Islamic way will not hamper potential fund performance,” explained Tupling.

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


***Taken from CIMB Principal Website.