TheStar
KUALA LUMPUR: AmInvestment Bank Bhd aims to attract RM100mil for its latest syariah-based capital protected fund – AmStaples – by Jan 30.
The fund has yielded RM15mil in take-up rates since its soft launch on Dec 17.
AmStaples provides a contracted fixed income with a minimum 6% return in the first 12 months and 2% at maturity, which is 33 months.
At least 95% of the net asset value of the fund would be invested in 33-month tenured certificates denominated in Australian dollars and 5% in commodities such as corn and soybean as well as stocks such as Kraft Foods Inc and Nestle SA.
The fund is also exposed to the performance of the Australian dollar against the ringgit.
“The Australian dollar is expected to appreciate over the medium to long term since Australia, a major commodity producer, will benefit when demand for commodities pick up in line with the global recovery,” said chief executive officer Datin Maznah Mahbob after the fund launch.
Maznah said that globally, the outlook for the food and agri-business industry remained positive, driven by high demand for food and biofuel.
“Demand for staple foods is unlikely to drop despite the unfavourable economic conditions.
“It is one of the investment opportunities during recessions because such assets are expected to remain resilient during this period,” she said.
AmInvestment retail funds director (funds management) Ng Chze How was confident of a good take-up rate for the fund, marketed under the group’s retail brand AmMutual.
Ng said most of AmMutual’s 43 unit trust funds had outperformed the market’s benchmark in 2008.
For AmStaples, he said a special incentive would be given to early investors.
“They will get a ‘headstart coupon’ of 15% returns. If the investment in the food staples (of AmStaples) remains flat at maturity, the investors will still get 15% return.
“But if the food staples move up by 5%, the investors will gain 20% return. If the investment drops by 10%, the investors’ return will still be positive at 5%,” he said.
As at Dec 31, the total assets under AmMutual management were valued at RM16bil.
Ng said that of the 43 funds managed by AmMutual, about 20 were based on fixed income, contributing 65% of the total fund size.
“In line with the group’s overall targets, the fund management division aims to double its business in terms of revenue and economic profit by March 31, 2011.
“This year, we plan to launch eight to 10 funds,” he said.
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