The ING Baraka Capital ProtectedA RM300 million fund, it is open to the public from 9th May to 22nd June 2007. Its original size is RM200 million but another 50 % i.e. RM100 million was approved by the Securities Commission recently for additional subscription.
Know who ING Investment Management Asia Pacific is. This is their reputation. It was ranked the number one retail investment manager for Asia-Pacific ex-Japan in 2005. It is also the number 6th ranking institutional investor ex-Japan. It won the Asia Asset Management 2006 Award for most innovative product. Currently two of the funds it is managing in Malaysia is doing well. AsiaPac Capital Guaranteed is worth 11.7% more in value and the ING GIO Capital Protected is worth 6.4% more.
With that as the background, what about the ING Baraka Capital Protected? Is the risk manageable? Will it go the way of the earlier two funds?
Let us look at asset allocation. 85 % will be invested in Islamic Negotiable Instruments; 10% in SGAM Baraka Option and up to 5% in Islamic fixed income instruments. If you hold your investment for the full tenure, you will be assured of capital return. So what is at risk? Opportunity cost; the least of which is the current interest rate regime which is at 3.7%. Anything above that will be considered fair to good. You may also get nothing. That is the worse scenario. If there are some gains, these should be proportionately benchmarked against the prevailing interest rate; 36 months down the road.
Given its good track record and the acumen of Societe Generale in global investments, I think the ING Baraka Capital Protected is a low risk investment with good upside potential. If it is true that they actively manage their portfolio of 30 selected stocks every quarterly,then I believe that the down side will be fairly minimal.
If you have 5 Grand to spare, Baraka could be your vehicle to better asset management and wealth creation. All the best.
Heartsong
Know who ING Investment Management Asia Pacific is. This is their reputation. It was ranked the number one retail investment manager for Asia-Pacific ex-Japan in 2005. It is also the number 6th ranking institutional investor ex-Japan. It won the Asia Asset Management 2006 Award for most innovative product. Currently two of the funds it is managing in Malaysia is doing well. AsiaPac Capital Guaranteed is worth 11.7% more in value and the ING GIO Capital Protected is worth 6.4% more.
With that as the background, what about the ING Baraka Capital Protected? Is the risk manageable? Will it go the way of the earlier two funds?
Let us look at asset allocation. 85 % will be invested in Islamic Negotiable Instruments; 10% in SGAM Baraka Option and up to 5% in Islamic fixed income instruments. If you hold your investment for the full tenure, you will be assured of capital return. So what is at risk? Opportunity cost; the least of which is the current interest rate regime which is at 3.7%. Anything above that will be considered fair to good. You may also get nothing. That is the worse scenario. If there are some gains, these should be proportionately benchmarked against the prevailing interest rate; 36 months down the road.
Given its good track record and the acumen of Societe Generale in global investments, I think the ING Baraka Capital Protected is a low risk investment with good upside potential. If it is true that they actively manage their portfolio of 30 selected stocks every quarterly,then I believe that the down side will be fairly minimal.
If you have 5 Grand to spare, Baraka could be your vehicle to better asset management and wealth creation. All the best.
Heartsong
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