Islamic Investor: Islamic Investor: - Islamic Finance News

RESULTS
Best Islamic Equity Fund
Am Namaa’ Asia Pacific Equity Growth Fund
In August 2008 AmMutual created a fi rst of sorts when it
launched the dollar-denominated Am Namaa’ Asia-Pacifi c
Equity Growth Fund and the ringgit-based Am Namaa’ Asia-
Pacifi c Equity Growth Fund, the fi rst master/feeder fund
with Al Rajhi Bank (Malaysia) for an Asian mandate out of
Malaysia. Am Namaa’ Asia-Pacifi c Equity Growth Fund
is targeted at investors who have medium to long-term
investment goals and seek exposure to Asia-Pacifi c (ex
Japan) markets and capital appreciation. The feeder fund
seeks to grow the value of investment in the longer-term by
investing in listed equities and equities-related investments,
and other Islamic instruments that conform to the principles
of Shariah, across Asia-Pacifi c (ex-Japan).
According to AmMutual’s semi-annual report dated the 30 th
April 2011, the size of the Am Namaa’ Asia Pacifi c Equity
Growth stood at 1,011,857 units while its assets under
management amounted to US$17.37 million. The fund’s
average total return for one year was 20.1%, outperforming
its benchmark, the Dow Jones Islamic Market Index Asia
Pacifi c (ex Japan) by 1% while the average total return since
inception saw the fund outperform the benchmark’s 9.8%
return by 12.2%. Data provider Eurekahedge reports that the
2010 return for the fund was 21.38% while its yield-to-date
return as at 31 st July 2011 was 8.58%.
Best Islamic Bond Fund
CIMB Islamic Enhanced Sukuk Fund
This open-ended bond fund with an equity allocation is
domiciled in Malaysia and managed by CIMB-Principal Asset
Management (not to be confused with CIMB-Principal Islamic
Asset Management). With a fund size of RM21.58 million
(US$7.2 million) as at June 2011, the fund aims for mediumterm
growth in a Sukuk portfolio with the majority of the
fi xed income securities ranging from three years to 10 years
and primarily in the corporate Sukuk market as opposed to
sovereign bonds. There is also investment in credit papers
from the primary and secondary markets.
Its equity allocation sees the fund investing in Shariah
compliant stocks that show strong growth and positive
earnings momentum but still trade at decent or low valuations.
As at June 2011, the fund’s top three securities were mainly
invested in sectors related to infrastructure, banking and
utilities. Launched in February 2005, the fund’s cumulative
return since inception is 44.49% compared to its benchmark
(85% CIMB Islamic one-month General Investment Account-i
(GIA) + 15% FBM EMAS Shariah Index) which recorded a
25.87% return - an outperformance of 18.62%.
Its one year cumulative return stood at 11.43%, outperforming
its benchmark by 6.37%. CIMB Principal attributes the
outperformance to good credit selection and optimal
management of portfolio duration.
Best Islamic Balanced Fund
Public Islamic Balanced Fund
Launched in 2005, Public Islamic Balanced Fund (PIBF)
seeks to produce steady and recurring income while pursuing
long-term capital growth by complying to a balanced asset
allocation approach. This approach involves investing
40-60% of its net asset value (NAV) in Shariah approved
securities. A signifi cant portion of the balance of PIBF’s NAV
is invested in Islamic debt securities to generate the required
recurring income. Investments in overseas markets are
also considered, subject to regulatory approval, to achieve
increased diversification.
As at the 29 th July 2011, the fund’s portfolio comprised of
61.41% Shariah compliant equities, 17.28% Islamic debt
securities, with a portion comprising the remaining 21.31%
invested in Islamic money market instruments and other
investments. Slightly above 10% of the fund is invested in
securities in China, Taiwan and Korea. The NAV of the fund
stands at RM487.78 million (US$164.4 million). Its three year
total return was 23.75%, outperforming its benchmark (the
Public Islamic Balanced Index consisting of 60% returns of the
FTSE Bursa Malaysia Emas Shariah Index and 40% returns
on the three-month Islamic interbank money market index) by
3.35%. PIBF’s total return since inception has outperformed the
benchmark by 5.66%.
28 September 2011