Prudential Dinasti Equity Fund to ride on China’s consumption boom
Kuala Lumpur, 26 October 2009 – Prudential Fund Management Berhad (PFMB) today
launched a new Shariah-compliant equity fund that leverages on the anticipated consumption
growth in China.
Called the Prudential Dinasti Equity Fund (“PRUdinasti”, or the “Fund”), the Fund seeks to
achieve its objective by investing primarily in Greater China-based Shariah-compliant equities
listed in recognised exchanges in the People Republic of China (PRC), Hong Kong, Taiwan as
well as other permissible exchanges such as Singapore, Malaysia and the United States.
In launching this fund today, PFMB Chief Officer of Products and Marketing Christopher Chan
described this approach as a twin-pronged strategy that enabled investors to benefit from both
ends – consumption surge within mainland China as well as potentially more favourable equity
valuations of selected companies in a wider pool of available exchanges in the Greater China
region.
PFMB has also worked with Dow Jones Indexes to create an index, the Dow Jones Islamic
Market Greater China Index, to be used as a benchmark by the Fund.
“When we first realized there was a need to a more fitting measure of the Shariah-compliant
equities in the Greater China region, we approached Dow Jones Indexes to create the Dow
Jones Islamic Market Greater China Index because we recognize Dow Jones Indexes as one
of the leading global providers in indices”, said Mark Toh, Regional Head of Islamic Fund
Management, Prudential Corporation Asia and also the Chairman, and Acting CEO of PFMB.
“PFMB’s decision to select the Dow Jones Islamic Market Greater China Index as the
benchmark for the PRUdinasti equity fund gives market participants in Malaysia exposure to
the stock performance of leading Shariah-compliant companies in Hong Kong, mainland China
and Taiwan. The index is part of the unique Dow Jones Islamic Market index series which
combines faith-based principles with investing. In 1999, Dow Jones Islamic Market Indexes
were the first to market and have set the standards of Islamic indexing ever since,” said
Michael A. Petronella, President, Dow Jones Indexes.
Chan explained that PRUdinasti extended its focus to Taiwan and Hong Kong as part of its
diversification as the consumption boom of Mainland China would need some time to take full
flight, citing the fact that private domestic consumption as share of GDP in China is the lowest
among the four BRIC countries1 (Brazil, Russia, India, China), besides being just over half of
what US consumption rate is2. In addition, PFMB believes there is also a lack of Shariahcompliant
products in this category and with the Malaysian regulators supporting Islamic Fund
Management activities, we are pleased to offer Malaysian and global investors this opportunity
to participate in this sector.
“China’s urban population is seen touching 47% next year and is projected to hit 57% by 20203.
Currently, urban consumer spending is estimated at 37% of GDP (Gross Domestic Product)
and it has the potential of almost growing to 50% in 11 years 4 . Imagine the growth of
companies that pander to this domestic consumption capacity and this is where we will focus
on to provide our investors with potentially attractive returns over a long term horizon,” Chan
added.
“By also looking at companies in Hong Kong and Taiwan, which are already among China’s top
five trade partners in 2008 and benefiting from the harmonious economic link with China, we
are able to adjust our investments accordingly to wherever there is better growth at any point in
time. Rest assured, our on-the-ground knowledge of investment experience in the China
securities through our successful partnership with CITIC-Prudential will continuously lead us in
bringing value to our investors.” stated Chan.
Investors interested in seeking long term capital appreciation through participation in Shariahcompliant
Greater China equities will find this Fund suitable for their portfolios.
Correspondingly, these investors would also have a high tolerance for risk and have a longterm
investment horizon.
A total of 100 million units of the Fund are available for subscription beginning 26 October 2009
to 15 November 2009 at a price of RM1.00 per unit for a minimum investment of RM1,00


