Aiiman Asia Pacific (ex Japan) Dividend Fund

 

Objective

The Fund aims to provide investors with regular income and capital growth through investments in Shariah-compliant investment.

Fund Category  Equity
Launch Date 21 February 2019
Base Currency MYR
Investors’ Profile This Fund is suitable for you if you:

  • want regular income distribution and capital gains;
  • have a medium to long term investment horizon; and
  • have a moderate risk tolerance.
Investment Strategy To achieve its objective, the Fund will be investing in a portfolio consisting a minimum of 70% of its NAV in Shariah-compliant equities, while a maximum of 30% of its NAV in Sukuk, Islamic money market instruments and/or Islamic deposits.

The investment selection process will include dividend paying companies that are able to provide a steady income stream to the Fund. As such, we would adopt a bottom-up strategy where individual stock analysis forms the primary building blocks for portfolio construction and stock selection. The Fund focuses on higher dividend paying sectors where cash flows are more resilient towards the broader market environment, examples of which include utility companies. Similarly, the Fund will also look at selected lower dividend yielding stocks with prospects of growing its dividends to achieve an element of capital growth in addition to dividend yield on a total return basis. Key factors which are useful to the identification of such companies would include sales and profit growth, financial strength and gearing levels, capital expenditure levels as well as management commitment to rewarding shareholders via dividends or capital repayments. The dividends provided by these companies would be the primary source of income from which the Fund would then declare income distributions to you.

While we typically take an active trading policy, we look to maintain some core holdings that are held over the medium to long term which is similar to a buy and hold strategy. We will also maintain a trading portion for the portfolio, which we use to take advantage of beneficiaries during prevailing market conditions with the aim of boosting the Fund’s performance.

The Fund intends to adopt a two-part approach whereby a portion of the Fund’s investments will be focused towards stable and high-dividend yielding Shariah-compliant equities, and the other portion will be invested in “the next dividend leaders”. These are equities which we believe could, in the medium term, potentially start paying high dividends or substantially increase the existing dividend payouts. The determination of proportion between the two parts will be driven by prevailing opportunities in the markets and premised on achieving the overall Fund’s objective of providing regular income and capital growth over the medium to long term. However, as the Fund’s primary objective is to provide regular income, there is a natural bias towards holding more of the stable and high dividend yielding Shariah-compliant equities.

While the Fund’s core investments will remain in Shariah-compliant equities, the Fund holds the option to invest into Islamic fixed income instruments such as Sukuk, Islamic money market instruments and/or Islamic deposits. The selection of Islamic fixed income instruments will depend largely on its credit quality where the respective issuers will have strong ability to meet their financial obligations, healthy cash-flow, the collateral type, value, claims priority as well as offer higher safety for timely payment of profit and principal.

To achieve its objective, the Fund may invest in unlisted Shariah-compliant securities, Shariah-compliant warrants as well as Islamic collective investment schemes.
Asset Allocation
  • Shariah-compliant equities: Minimum 70% of the Fund’s NAV
  • Sukuk, Islamic money market instruments & Islamic deposits: Maximum 30% of the Fund’s NAV
Distribution Policy Subject to the availability of income, the Fund will distribute income on a semi annual basis, after the end of the first financial year of the Fund.
Minimum Initial Investment MYR 1,000
Minimum Additional Investment MYR 100
Minimum Units Held 2,000 Units

Sales Charge Up to 5.50% of the initial offer price during the initial offer period and thereafter, the NAV per Unit.

You may negotiate for a lower Sales Charge.

All Sales Charges will be rounded to two (2) decimal places and will be retained by AIIMAN.

Annual Management Fee Up to 1.80% per annum of the NAV of the Fund.
Annual Trustee Fee Up to 0.06% per annum of the NAV of the Fund (excluding foreign custodian fees and charges).
Repurchase Charge Nil
Transfer Fee Nil
Switching Fee Nil