Public e-Islamic India Global Equity Fund

Aiming to tap into gains from one of the fastest-growing economies in the world, the Public e-Islamic India Global Equity Fund will be investing a minimum 30% of its assets into Shariah compliant equities and related instruments within India.

Malaysian asset manager Public Mutual launched this fund on the 24^th September 2024 for 21-day initial offer period till the 14^th October 2024, with both the entry point and subsequent subscriptions set at RM100 (US$23.70).

Classified as high risk, this actively-managed fund aims to achieve capital growth over the long term. Annual dividend distribution will be done after the 31^st October financial year-end, to be automatically reinvested unless prescribed otherwise by the individual investor.

The fund manager said this fund looks to benefit from “a young and growing working-age population that is increasingly technology-literate, coupled with a rising urban middle class, (which) provides India with a robust consumer base to drive domestic consumption”.

It anticipates the combination of manufacturing-friendly policies, higher investments and growing domestic demand should underpin India’s economic growth in the years ahead – with India’s real GDP estimated to have risen by 8.2% in the fiscal year (FY2024) ended on the 31^st March 2024 and projected to grow by 7.0% in FY2025.

Beyond India, this fund also seeks to tap into long-term growth opportunities in the global markets – on the back of the continued expansion of the US and selected Asian economies, alongside a recovery of the Eurozone’s economy.

A minimum 75% of the fund’s net asset value (NAV) will be invested in Shariah compliant shares or equivalent securities that may be unlisted – with the balance to be placed in Sukuk, Islamic money market instruments and Islamic deposits. Up to 20% of the fund’s NAV may be invested in Islamic collective investment schemes.

The thematic investment focus would be on stocks linked to technology, consumer products and services plus healthcare and pharmaceutical – especially since healthcare spending could rise amid an aging global population, along with better healthcare services for India’s growing middle class.

Rather than relying on a single benchmark, the fund follows a composite made up of:

• 40%: S&P India LargeCap Shariah 20% Capped Index,
• 25%: S&P US LargeCap Shariah Index,
• 25%: Customised index by S&P Dow Jones Indices, based on top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index, and
• 10%: Three-month Islamic Interbank Money Market (Malaysia) rate.

To mitigate risks arising from volatilities in market movements, foreign currency exposure and other effects, hedging strategies can be conducted using Islamic derivatives such as futures contracts, foreign exchange forward contracts and other options approved by the Shariah adviser.

If Islamic derivatives are not available or are not commercially viable, the fund manager may use conventional derivatives, subject to prior approval from the Shariah adviser.

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such. 

Source: Public Mutual