Saturna has established itself as an expert in Islamic funds. It acts as a sub-adviser to the Crescent International Equity Fund, managed by Crescent Wealth, Australia's first Islamic wealth manager. Saturna Capital is adviser to the Amana Mutual Funds (Amana Growth Fund, Amana Income Fund, and Amana Developing World Fund) that follow principles of Islamic finance.
The ASEAN Equity Fund invests in a diversified portfolio of shari'ah-compliant equities across the ASEAN region using a values-based investment approach developed by Saturna Capital's Chief Investment Officer Nicholas Kaiser. The criteria for stock selection will include identifying companies with improving fundamentals and growth at reasonable valuations.
At least 70% of the Fund's net asset value (NAV) is in shari'ah-compliant equities in ASEAN countries, and up to 30% of the dund's NAV is in liquid assets including money market instruments and deposits with Islamic financial institutions.
According to Saturna, the ASEAN Equity Fund has a low-fee structure designed to be fair, transparent, and aligned with the long-term interests of unit holders. The Fund is offered with no sales charge, low administrative fees and transparent distribution fees. Additionally, the management fee of the Fund is performance-based - the management receives no fee unless the fund makes money for its investors.
Monem Salam, Saturna ASEAN Equity Fund Portfolio Manager and President of Saturna in Malaysia, commented at the time of the launch: "We believe the ASEAN Equity Fund will first and foremost fill a gap for high-net-worth and institutional Islamic investors in and outside Malaysia. It could also serve as a low-cost vehicle for qualified non-Muslim investors who want to access investment opportunities in the rapidly growing ASEAN markets. An additional attraction for all qualified investors will be the Fund's performance-based fee structure, which, in line with shari'ah practices, makes sure that the management makes money only if investors do."
The fund, denominated in Malaysian ringgit, is available to domestic and foreign qualified high-net-worth individuals and institutional investors. Click here for more information about the fund.