Dividend and Growth- Domestically

Today is the launch date of Public Islamic Optimal Growth Fund(PIOGF), which capitalise on dividend and growth stocks in the domestic market.

Many may ask why at this stage Public Mutual launched a domestic fund, when the political landscape of the country is still uncertain. The Bursa had drop significantly since the election, and many uncertainty still to come as the new state government in 5 states are in the process of reviewing the projects, introduced by the previous government, in their respective states. But while share prices keep on changing everyday, the fundamental of a company will not change overnight, which make this fund relevant to any investor.

First of all, if the state government will not stop a project that benefit the people, as they are much more eager to please everyone as they are new. If eventually a project is stop by the state government, that means it is not a beneficial project, which carry the meaning that, even though the project is carried out completely, it will not do well. Logical right?

PIOGF invests 50% of its equity investment in Shariah-compliant growth stocks in the domestic market while the remaining 50% of its equity investment is invested in Shariah-compliant stocks which offer attractive dividend yields.

The growth stock here, at the current price, can point to some of the blue chips. Counters like Tenaga and Sime have in recent time drop of so drastically that, when the political landscape become certain, they will get back to their normal level, which is almost 30% more of the current price.

As for stocks which offer attractive dividend yields, there are aplenty in our Bursa. One point need to be highlighted is that, Malaysian economy is NOT doing badly at the moment (as the record dividend declared by the listed companies show), therefore the current low pricing on the stocks are merely caused by perception, not fundamental.

PIOGF is a capital growth and income fund that is suitable for medium to long-term investors with aggressive risk-reward temperaments. PIOGF distributes annual income to the investors on a best effort basis.