Kenanga Investors relaunch of two of its unit trust funds, the Kenanga Global Growth Fund (“KGGF”, formerly Kenanga Resource Equity Fund) and Kenanga Global Islamic Fund (“KGIF”, formerly Kenanga Islamic Fund) shifting away from its previous focus on resource products such as energy, minerals, agriculture to primarily in global equities and equity-related securities.
For KGIF, its primary investment focus remains achieving steady capital growth and income distribution in a diversified portfolio according to Shariah principles, albeit in global Shariah-compliant equities and Shariah-compliant equity-related securities. Its benchmark, as of relaunch, is the Dow Jones Islamic Market World Index (“DJIM World”), which measures the performance of a global universe of investable equities that have been screened for Shariah compliance consistent with Dow Jones’ Islamic Markets Index methodology.
“We have reintroduced these Funds to the market to provide our clients a greater degree of global exposure. By investing in global markets, we will have a wider scope to capitalise on secular growth trends such as digitisation, electric vehicles, 5G, and also the expected rebound in markets post-COVID. The indices to which the relaunched funds are benchmarked, the MSCI ACWI and DJIM World, have also shown consistent growth over the past 10 years despite economic cycles and major economic events, which demonstrates that global exposure delivers good returns and provides diversification”, says Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer.
The firm will adopt an active investment strategy that combines bottom-up investment analysis of companies with top-down macro-analysis of countries and sectors in asset allocation. The investment process will be consistent with the firm’s philosophy of investing in companies that generate earnings growth and provide decent returns on capital, as well as by identifying companies that are undervalued. Key factors of focus include 1) Sustainability of the business model, 2) Management track record, 3) Earnings growth and visibility, and 4) Returns on Capital.
The Funds are suitable for investors who seek capital growth over a medium to long-term investment horizon. The initial minimum investment amount will be RM5,000.00 with every additional investment at RM200.00 for KGGF while KGIF will require RM1,000 as a starting amount with RM100 for each additional investment.