In recent years, China has emerged as the new economic powerhouse, and its impact on global economic growth has drawn investors’ attention to Asia in general.
With vast potential and endless possibilities, China, being the world’s second-largest economy, has become the biggest trading partner of most countries.
Realizing the country’s potential, Eastspring Investment Bhd, one of the largest asset management companies in Malaysia, has launched the Eastspring Investments Islamic China A-Shares Fund.
According to the fund house, interest in Chinese equities has been strong over the past three years, as shown by the growth in assets under management of Eastspring Investments Dinasti Equity Fund, which have increased by 79%, despite the pandemic. of Covid-19.
Eastspring Investments fund manager Lai Eu-Roy said the new Islamic China A-Shares Fund offers many benefits to clients, one of which is its low correlation with the global equity market. âInstitutional exposure to Chinese A-shares has gradually helped stabilize the market, which in turn will contribute to the stable performance of the Chinese Islamic A-share Fund.
âThe Shanghai and Shenzhen stock exchanges totaled nearly 4,200 listed companies and a combined market capitalization of US $ 12,200 billion at the end of 2020. Lai.
âIn addition, onshore A-stocks and Hong Kong-listed Chinese stocks tend to focus on different sectors of the Chinese stock market, providing greater diversification for investors keen to take advantage of China’s dynamic growth.â
He adds that the fund is categorized as aggressive due to its foreign equity component and is very suitable for investors who seek capital appreciation, have a high tolerance for risk and take a long-term investment horizon.
âOur strongest value proposition would be Eastspring’s experience and track record of asset management in China. The Eastspring team in Malaysia, which is complemented by global investment experts, has over 12 years of experience investing in Greater China through its Eastspring Investments Dinasti Equity Fund and today manages a total of 1.5 billion ringgit (as of June 30) in Chinese equities, âhe said.
âThe company invested in China as early as 2000, when its parent company, Prudential plc, established the first Sino-UK insurance joint venture. “
Initial investment of 1,000 RM, selling charge up to 5.5%
Investors can subscribe to Islamic China A Stock Fund with a minimum initial investment of RM1,000 and additional investments may be as low as RM100.
The annual management fee is 1.8% of the net asset value (NAV) of the fund, calculated and accrued daily. The sales charge is up to 5.5% of the initial offer price during the initial offer period and thereafter of the net asset value per unit.
âWe believe that in the end, the strong fundamentals of the stocks we have selected will generate returns over the long term. As such, although the markets can be volatile, as investors we need to have a longer investment horizon to see the fruits of our investments, âsaid Lai.
âWe believe that if we are able to deliver consistently good returns, not only will our investors stay with us, but they will continue to invest and supplement their investments. Through our structured investment process and a strong and experienced investment team, we aim to ensure that our investors’ money is managed properly and that they achieve better returns compared to the overall performance of the market.
In addition to this, Eastspring investors can monitor the performance of the fund through its platform or online application. Three months after launch, the fund’s technical sheet will be published monthly.
âWe understand that in addition to good performance, customers may also want to stay in touch with us or be kept informed of the latest news or market information. As such, we are constantly providing market information through webinars, our websites and social media, âhe adds.
âWe have enhanced our websites and digital connectivity to allow our investors to view their investments and also transact digitally. “
Lai points out that Eastspring believes his disciplined valuation and research-driven investing style can generate attractive returns for his clients over the long term. âWe derive intrinsic value based on valuation, growth and cash flow analyzes and we have a quality bias for companies with strong balance sheets, good earnings visibility and sound management. “
âThe mispricing of securities driven by greed and investor fear is a persistent phenomenon, which can be successfully exploited through our long-term investment approach. Value opportunities are also created by cyclical ends of the interest rate and credit markets or changes in investor risk perception, which cause assets to be poorly valued relative to their fundamentals, âhe said. he declares.
Investing easily with myEastspring 2.0
On the digitalization and customer experience front, Lai says Eastspring Malaysia is one of the few fund management companies in the country to have invested heavily in fintech development to empower its investors and improve their experience. .
To meet the evolving needs of investors in the digital age, Eastspring Malaysia introduced a suite of new enhancements to its platform in 2019 to include innovative and new digital functions and capabilities. âThe new myEastspring 2.0 platform has been developed with three components, for users at the retail, wholesale and institutional levels,â he says.
Eastspring was one of the first five fund management companies to be invited to participate in the launch of the Employee Provident Fund (EPF) digital platform in August 2019. Through this platform, investors who choose Eastspring will seamlessly switch to myEastspring 2.0 to complement their investment. transaction.
In July, Eastspring implemented the Do-It-Yourself feature, which allows investors to trade on their own.
The platform also simplifies the provision of the cumbersome documentation that usually accompanies the creation of an account, as everything is done online and the supporting documents can be downloaded at the investor’s convenience anytime and anywhere. “Lai explains.
âThe new myEastspring platform also provides the tools our trust consultants need to monitor their sales performance and better serve their clients,â he adds. To date, over 2,000 Eastspring Unit Trust Consultants use myEastspring 2.0.
Investors are advised to read and understand the contents of the Eastspring Investments Islamic China A-Shares Fund (âFundâ) prospectus dated September 13, 2021 (âProspectusâ) and the Fund’s Product Information Sheet ( âPHSâ) before investing. The Prospectus and the PHS are available from the offices of Eastspring Investments Berhad (âManagerâ) or its authorized distributors and investors have the right to request a copy of the Prospectus and the PHS.
This announcement has not been reviewed by the Securities Commission Malaysia (“SC”). The Prospectus has been registered with the SC which assumes no responsibility for its content. Registration of the Prospectus with the SC does not imply or indicate that the SC has recommended or approved the product. Units will only be issued upon receipt of the subscription form accompanying the Prospectus. The past performance of the Manager is no guarantee of the future performance of the Manager. The prices of the Units and the distributions payable, if any, may go down as well as up. When a division / distribution of units is declared, investors are informed that following the issue of additional units / distribution, the Net Asset Value (âNAVâ) per unit will be reduced by the NAV before the split. share / NAV accumulated at the distribution after split NAV / NAV excluding distribution. When a unit split is declared, investors are informed that the value of their Malaysian Ringgit investment will remain unchanged after the issuance of the additional units.
Investments in the Fund are exposed to Islamic collective investment scheme risk, equity risk, single country risk, currency risk, counterparty risk and sharia reclassification risk. Investors are advised to take into account these and other general risks as detailed in the Prospectus, as well as the costs, charges and expenses involved before investing. Investors may also wish to seek professional advice before committing to invest in units of any of our funds.
The Eastspring Investments companies (excluding the JV companies) are ultimately 100% / indirect subsidiaries of UK Prudential plc. The companies of Eastspring Investments (including the JV companies) and Prudential plc are in no way affiliated with Prudential Financial, Inc., a company headquartered in the United States of America or with Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the UK).