Eastspring launches Islamic equity income fund

MIDF Research said in retrospect, foreigners offloaded -RM19.5bil and -RM6.9bil in 2015 and 2014 respectively.

KUALA LUMPUR: Eastspring Investments Bhd launched the Eastspring Investments Islamic Equity Income Fund on Monday for investors seeking medium to long-term equity income funds.

This is a Shariah-compliant equity fund seeks to provide a stable income stream with medium to long-term capital growth, it said in a statement on Monday. The initial offer period for the fund is for 21 days and will close on April 28.

The units of the fund are at 50 sen per unit during its initial offer period. The minimum initial investment is RM1,000.

The fund was launched to meet the demands of investors with the appetite for medium to long-term equity income funds.

Although the fund will be a Shariah-compliant version of the company’s equity income fund, the fund managers will adopt the same investment philosophy of stock picking.

“We will generally pick companies with good quality management, which are able to deliver stable earnings growth and have sustainable dividend yields backed by strong cash flow generation,”  Doreen Choo, chief investment officer, Eastspring Investments Bhd said.  

“This strategy is intended to provide steady recurring income, as well as capital appreciation over the medium to longer-term,” she said.

Raymond Tang, CEO of Eastspring Investments Bhd said Eastspring was a valuation and research-driven house with good fundamental stock-picking skills and a disciplined portfolio construction process.

“We believe our investment philosophy can potentially generate consistent and attractive returns for our clients over the long run.  The team’s vast experience and strong drive enables us to add value during periods of market volatility,” Tang said.
 
On the outlook for Malaysia's stock market, Choo said: “We are optimistic about Malaysia’s long-term market outlook, but remain cautious over the near-term given the many challenges. Volatility is the new norm, be it from domestic politics or policies, made more challenging by external noises from the ongoing US-China trade war, US monetary policies and volatilities in commodities. 

“As such, we will focus on companies with strong fundamentals and good track record of adapting well even in challenging environments,”  she said.
 
Eastspring Investments managed over US$193bil assets as at Dec 31, 2018 on behalf of institutional and retail clients. It is the Asian asset management business of Prudential plc, one of the world’s largest financial services companies.
 
In Malaysia, Eastspring Investments Bhd has about RM39.30bil in assets under management as at Dec 31, 2018.