KUALA LUMPUR (Nov 24): CIMB-Principal Asset Management Bhd has announced a 2:5 unit split for existing unit holders of its CIMB-Principal Asia Pacific Dynamic Income Fund (APDI), which focuses on dividend yielding stocks with growth prospect in the Asia-Pacific ex-Japan region.
This is the first unit split exercise for the fund since its inception in 2011.
“While the portfolio may be defensive, the fund employs a bottom-up stock selection strategy to profit from the potential upside of companies with significant and consistent earnings growth," said CIMB-Principal chief executive officer Munirah Khairuddin in a statement today.
"These tend to be companies with good cash flow and history of dividend payouts. In view of the fund’s good track record, the unit split provided a good opportunity for new investors to consider the fund and for current unit holders to increase their holdings," she added.
With the unit-split exercise, investors as of Oct 15, 2014 will receive 2 new units for every 5 units they hold.
According to the Securities Commission's guidelines, a unit split can only be exercised should a fund's average net asset value (NAV) be on a sustainable appreciation for six consecutive months.
With a fund size of RM774.62 million as at Oct 31, 2014, APDI has consistently outperformed its benchmark of 8% per year with a cumulative total return of 78.75%, higher than the cumulative total return recorded by its benchmark at 30.51%.