KUALA LUMPUR: Kenanga Investors Bhd has launched the Kenanga Islamic Asia Pacific (ex Japan) Total Return Fund (Fund).
It is a shariah-compliant equity fund that invests in a diversified portfolio of equities and equity related securities of companies in Asia Pacific.
The fund offers investors the opportunity to tap into the regions' potential for economic growth, spurred by its increasing integration into the global economy and rising affluence as its young population is lifted out of poverty into a growing middle class, among other tailwinds.
"Kenanga Investors is dedicated to offering our investors regional Shariah-compliant exposure, driven by robust demand from investors for a fund with an Asia Pacific focus viewed through a shariah-compliant investing.
"We have observed that many countries in the region are implementing economic reforms and welcoming foreign investments, further integrating and increasing their influence on the global economy.
"The region is also punching above its weight globally within the fields of renewable energy, battery storage, electric vehicles, semiconductors and various other drivers of the economy of the future," said executive director and chief executive officer Datuk Ismitz Matthew De Alwis.
Additionally, with a population of over 4.5 billion that is relatively youthful De Alwis said the the region is also expected to enjoy a demographic dividend over the next decade further fuelling its growth.
"Indeed, growth in the region is expected to outpace global growth for the next few years. Given the convergence of these positives, I believe the fund will provide significant investment opportunities for investors particularly in areas such as technology, consumer goods and services, industrials and healthcare," he added.
He also highlighted the benefit of reducing exposure to any one country or region in today's investment climate.
"Investing at a broad regional level carries the benefit of mitigating risk due to political, regulatory and economic uncertainties and improved overall portfolio performance. By investing in a range of countries in the region, investors can spread their risks of any one country's developments on their portfolios," he said.
Chief investment officer Lee Sook Yee said the fund utilises an absolute return strategy to provide capital appreciation over the long-term.
"It will be managed without benchmark constraints, which provides the flexibility to identify and
implement the optimal investment strategy without single sector constraints.
"This includes bottom-up stock picking to select stocks with the greatest capital appreciation potential and controlled volatility," said Lee.