Today Al Rajhi Bank announced the new product. The product is one of the unit trust named Namaa’ Asia Pacific Equity Growth. As per prospectus on August 15th, 2008 the initial price and other details for the fund are:

• Initial Offer Price(NAV Per Unit) = RM0.50

• Initial Offer Period: 21 days (August 15th 2008 to September 4th 2008)

• Minimum Initial Investment: RM1,000

• Minimum Additional Investment: RM 500

Al Rajhi claimed that this fund is a new fund but according to the old prospectus this fund was from August 11th, 2008. (Pardon me if I’m wrong). This fund managed by Am Mutual. If you had a thought to diversify your investment and wanna be one of the richest man in Wall Street then start to learn by investing in Unit Trust.

Questions are: 

1. Why must AlRajhi Bank distribute this fund?
2. AlRajhi lack of professionals fund manager to come out with their own product?
3. Can it fight head to head with the Public Mutual Funds and CIMB Funds?
4. Why the initial price is RM 0.50? What about past history and performance?
5. Why must we invest in this fund?

I could not see the forecast for this fund as it will be using the USD which understandable weak starting from last year June when the carry trades heavily done with Yen. This fund will be traded in the equity in Japan. How strong is Japanese market right now? Nikkei 225 Index currently at the 13,019.41 points which are far away better than BSKL.

What Prospectus Say?

Asset Allocation: Minimum 95% of the fund’s NAV will be invested in the Malaysian Based target fund while maintaining a 5% of the fund’s NAV in liquid asset.

Investor Profile: The fund is suitable to those who:

• want investment exposure to Asia Pacific (excluding Japan)
• want capital appreciation
• have medium to long term investment goals

So it’s clearly stated that exposure to Asia Pacific equity excluding Japan. Forgive me for the wrong info as this what I got from the the Al Rajhi officer. So they have to learn more on this fund as this is the new born baby for them. If they success then more and more fund will be introduced.

This fund’s fee is about 5% on entry fee with annual fee around 1.88%. So if you like to start with RM10,000 then you have to fork out another RM500 as the entry fee. One thing best about this fund, you can easily switch from this fund to another fund easily by filling up a form.

If you have extra cash to spend, then diversified your investment and try out this new fund. As the new investment vehicle by Al Rajhi, I am very sure that they will do their best to push the fund manager, AM to work harder to get the best first annual result. I love to hear that the fund forecast will be like 7% per year. Just imagine when the compounding effect being applied to the money.

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