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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
RESULTS Best Real Estate Investment Trust Fund Axis REIT Axis REIT is regarded as Malaysia’s fi rst Islamic offi ce/ industrial REIT, and was listed on Bursa Malaysia on the 3 rd August 2005. Initially a conventional REIT, its principal activity is to own and invest in commercial, office and offi ce/industrial real estate. It was reclassifi ed as a Shariah compliant REIT in December 2008. Axis REIT is managed by Axis REIT Managers, whose primary objective is to ensure the fund provides a regular and stable income distribution to unitholders and ensure long-term growth in the net asset value of the fund. There are a total of 27 properties held by Axis REIT. Since its listing in 2006, Axis REIT has distributed income on a quarterly basis. As at the end of 2010, the REIT had distributed a total of 73.65 sen (24.67 US cents) per unit over a fi ve year period, the highest being 16 sen (5.36 US cents) per unit in 2010. As at the 30 th June 2011, its total income distribution was 8.7 sen (2.9 US cents) per unit for the fi rst half of the year. Its realized income before taxation amounted to RM32.8 million (US$11.06 million), up RM9 million (US$3.03 million) from the preceding year. Its fund size stood at 375.9 million units with assets totaling RM1.27 billion (US$424.2 million). The unit price of Axis REIT has increased by 45.8% to RM2.45 (US$0.82) as at the 26 th August 2011. Best Islamic Exchange Traded Fund Falcom Saudi Equity ETF In March 2010, Saudi Arabia’s Tadawul successfully launched its fi rst ETF: The Falcom Saudi Equity ETF (Falcom 30). Managed by FALCOM Financial Services, the fund, which aims to provide investors with long-term capital appreciation and growth, passively invests in listed Saudi equities in order to achieve results that correspond to the performance (prior to fees and expenses) of the benchmark index, the F30 Falcom Saudi Equity Index. The benchmark index tracks the performance of the top 30 (by free fl oat market capitalization) Shariah compliant Saudi equities listed on Tadawul, while the ETF invests at least 95% of its assets in Shariah compliant equity securities of companies that are listed and traded on Tadawul. The two largest securities invested are the Saudi Basic Industries Corporation and Al Rajhi Bank. Starting at an initial value of SAR25 million (US$6.66 million), the ETF has a total volume of 3.77 million shares being traded at the price of SAR19.55 (US$5.21) as at the 24 th August 2011. The total net asset value of the ETF stands at SAR74.5 million (US$19.86 million). According to data from Bloomberg, the ETF has provided a one-year return of 3.99% despite the volatile market conditions and political unrest in the Middle East. KNOW YOUR CLIENTS/ COMPETITORS Click on the company name and read their profile. COMPANY PROFILE RELATED ARTICLES It will also automatically list all the stories related to them. SEARCH ENGINE Allowing for a 360 o search capability on your clients, competitors and any Islamic finance terminology www.islamicfinancenews.com September 2011 29
Page 1 and 2: September 2011 Islamic Investor: Eq
Page 3 and 4: EDITOR’S NOTE Supplements Editor
Page 6 and 7: COVER STORY Equities Vs. Commoditie
Page 8 and 9: COVER STORY futures market to estab
Page 10 and 11: FEATURE investments in Islamic REIT
Page 12 and 13: Global industry One publication Est
Page 14 and 15: FEATURE or country-focused ETFs, wh
Page 16 and 17: FEATURE Source: Eurekahedge conduci
Page 18 and 19: CHAPTER Islamic Hedging & Risk Mana
Page 20 and 21: CASE STUDY Executive chairman of AP
Page 23 and 24: STATEMENT Beyond Banking Global Isl
Page 25 and 26: CHAPTER World Islamic Index’s out
Page 27 and 28: RESULTS Crème de la Crèmé The in
Page 29: RESULTS Best Asset Management Compa

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