OK so checked out Public Mutual’s website and fact sheet – here’s the juice:

The Public Asia Ittikal Fund (PAIF) is an Islamic equity fund that will invest 75-90% of its net asset value in regional equities.

The main objective of the fund is capital growth over the medium to long term. As mentioned, the 11 countries that Public Asia Ittikal fund will invest in are Taiwan, China, HK, S Korea, Japan, the 5 ASEAN countries (Malaysia, Singapore, Thailand, Indonesia and the Philippines) and Australia. The equity categories are mainly blue chips, growth and “fundamentally undervalued” stocks – I’m guessing that we will see companies like Hyundai, Samsung and Toyota in there somewhere.

It is an Islamic fund which means that Public Mutual will seek advice from a Syariah adviser to ensure that the investments are in keeping with Syariah principles or “halal”, so there will be no casinos, breweries, conventional banks in there.  But the fund is open to both Muslims and non-Muslims alike.

The PAIF is promoted as being suitable for investors with an aggressive risk profile or those who are able to withstand long periods of market highs and lows (to learn more about your risk profile in investing read my earlier post).

Price is 0.25 per unit which is inclusive of 6.5% sales charge, but good news for early birds – Public Mutual have announced an offer of 1% free units during the launch period or until their target is reached, whichever the earlier. Fund size is 1.5 billion units, and investors can purchase the Public Asia Ittikal fund through Public Mutual’s sales reps.

Sounds good for long term investors out there who may want to diversify into countries other than Malaysia if they haven’t already done so. However, note that Public Mutual have yet to prove themselves or establish a track record when it comes to overseas funds. The awards they’ve won over the years were for Malaysian equity and bond funds.

The game is still wide open for global or regional funds that are managed by Malaysian fund companies..

(this post was brought to you via a very slow streamyx connection 😦 )

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