KUALA LUMPUR (Dec 14): Public Mutual will launch an Islamic equity income fund, Public Islamic Savings Fund (PISVF) on Thursday, Dec 15 which will provide income over the medium- to long-term.

Public Mutual said on Wednesday the fund would invest in a diversified portfolio of primarily Shariah-compliant Malaysian stocks with the potential to offer attractive dividend yields.

Its targeted investments would be in companies which were consistent in rewarding their shareholders via dividend payouts.

PISVF may also invest in Shariah-compliant growth or recovery stocks that have the potential to eventually adopt a dividend payout policy.

Public Mutual chief executive officer Yeoh Kim Hong said PISVF focuses its investments mainly in the domestic market.

“The fund offers investors an opportunity to capitalise on Malaysia’s resilient economic growth prospects in the medium to long-term,” Yeoh said.

With PISVF, investors can take part in a diversified portfolio of Shariah-compliant blue chip stocks, growth stocks and fundamentally undervalued stocks which distribute or have the potential to distribute reasonably attractive dividends.

Public Mutual said due to the sharp retracement in equity markets at end 3Q2011 on concerns over the slowing pace of global economic growth and the European sovereign debt crisis, selected stocks listed on Bursa Malaysia were trading at below trend valuations and offered attractive investment opportunities for medium- to long-term investors.

The PISVF might also invest up to 30% of its net asset value (NAV) in selected foreign markets which include Singapore, Taiwan, South Korea, Japan, Hong Kong, Thailand, Indonesia, Philippines, Luxembourg and other permitted markets.

Public Mutual said PISVF’s equity exposure would be between 75% and 98% of its NAV.

The initial issue price of PISVF is 25 sen per unit during the 16-day initial offer period from Dec 15 to 30.

The minimum initial investment is RM1,000 and the minimum additional investment is RM100.