Pheim Greater China Islamic Fund
Fund Goals / Features
PGCIF strives to provide the best possible returns over a long-term period by investing primarily in Shariah-Compliant Equities and Shariah-Compliant Equity Related Securities of companies listed on or traded in the People’s Republic of China, Hong Kong Special Administrative Region and Taiwan markets.
Who Should Invest In PGCIF?
Suitable for investors who prefer long-term capital appreciation, are willing to accept high risks, and want to have a portfolio of investment in the Greater China region rather than a restricted portfolio of domestic securities.
Asset Allocation & Benchmark
The Fund seeks to provide capital appreciation. To pursue this goal, the Fund will invest primarily in the People’s Republic of China, Hong Kong Special Administrative Region and Taiwan markets in accordance with Shariah requirements. 70% – 95% of the NAV of the Fund will be invested in Shariah-Compliant Equities and Shariah-Compliant Equity Related Securities (including Shariah-Compliant Warrants); 0% – 20% of the NAV of the Fund will be invested in Islamic Collective Investment Schemes (including Islamic REITs); and the remaining NAV of the Fund will be invested in Sukuk and Islamic Liquid Assets. The performance benchmark of this Fund is a 5.5 % growth in NAV per annum over the long-term.
Economic Growth In East Asia & Greater China
Economic sectors in the East Asian region continue to see exponential growth driven by a mixture of technological advancement, efficient labour and governmental intervention. Chief among these regions is the Greater China region, which has increasingly become the focus for foreign investors reaching up to over 160 billion USD for new foreign direct investments (FDI) in 2020 (while US gained only 134 billion USD in new FDI). Thus, long-term investors who view the Greater China region as high potential markets with conducive environments for businesses to flourish, should consider investing in PGCIF.
Source: Reuters 2021, https://www.reuters.com/article/us-china-economy-fdi-idUSKBN29T0TC
China is a Prime Hub for New Technological Advancements
Many of such new businesses have sprouted in China including:
Economic and industry transformation and the emergence of new enterprises operating on new business models in the Asia ex-Japan region will accelerate in response to advances in digitalization and automation and policy mandated transition to a lower carbon economy. Many of such new businesses have sprouted in China, including internationally recognized companies such as Alibaba, Tencent, Baidu, Huawei and Xiaomi. A lot of investments are going into various sectors, including EVs and batteries, AI and green & sustainable energy. For example, the EV sector is seeing a lot of activities. China is pushing its ambitious plan to transition to all electric or hybrid cars by 2035. EV sales accounted for only 10-11% of new car sales in China so far in 2021, indicating high potential for growth. In addition, a lot of innovative and disruptive technological advancements are also taking roots in other countries bordering the Greater China Region.
Key Drivers of Global Manufacturing
40% of the Fortune Global 500 are from Asia, and three of the top 10 companies are from China. Asia is the key outsourcing destination for technology manufacturing globally, representing a multitude of diverse players of all shapes and sizes, including industry behemoths in the key electronic and semi-conductor sector, such as Taiwan’s TSMC and South Korea’s Samsung Electronics. Half of the world’s fastest growing global companies in a broad range of sectors, including industrial, automotive, information technology, finance and supply chain logistics are located in Asia. The East’s predominance as the outsourcing manufacturing location for the world is not expected to change in the foreseeable future despite the US’ push for US businesses to relocate manufacturing to the US.
China Holds Dominion over the Richest Region on Earth
This push for development and trade is a common theme among many countries as Asia already makes up half of the world’s middle class, accounting for 40% of global consumer spending. That percentage will go up to above 50% by 2032 as a result of the expanding middle class and urbanization.
Urbanization will add 1.2 billion people to urban areas by 2050. Urbanization and the rise of the middle class will boost investments in infrastructure and consumer demand, unleashing continuing demand for goods and services. By strengthening its foothold into promising developing nations such as Malaysia (of which rank China as its largest trading partner in 2019) and other key Asian nations, China will be able to gain access to the vast resources and business opportunities.
With the world’s largest population, more than 1 billion Asians are set to join the Middle Class by 2030, with three quarters expected to come from India and China itself.
“Asia will account for 50% of global consumer spending by 2032.”
Fund Key Information
|Pheim Greater China Islamic Fund|
|Category/Type of Fund||Equity (Islamic)|
|Launch Date||16 Dec 2021|
|Investment Manager||Pheim Islamic Asset Management Sdn Bhd|
|Trustee||Maybank Trustees Bhd|
|Shariah Adviser||Amanie Advisors Sdn Bhd|
|Maximum Sales Charge||5%|
|Annual Management Fee||1.5%|
|Annual Trustee Fee||0.055%|
|Initial Offer Price||RM 1.00|
|NAV/Unit @ 31 Dec 2021||RM 1.00|
|Min. Initial investment||RM 1,000|
|Min. Additional investment||RM 100|