KUALA LUMPUR (June 2): TA Investment Management Bhd (TAIM) has declared gross income distributions of two sen per unit for TA Islamic Fund (TAIF) to the registered unitholders of the funds as at May 31, 2022.

The subsidiary of stockbroking company TA Securities Holdings Bhd (TASH) said in a statement on Thursday (June 2) that TAIF had a three-year total return of 34.53% as of April 29, 2022.

“TA Islamic Fund aims to provide steady capital growth over the medium to long-term period by investing in a portfolio of authorised investments which conforms strictly to Shariah principles.

“Despite market volatility over the recent market cycle, TAIF has delivered consistent returns to its investors with a three-year total return of 34.53% as of April 29, 2022,” TAIM said.

It said governments and investors are either “panicking” or “getting intolerant” of rising inflation from the high oil and gas prices, rising food prices and labour costs that were triggered by post-pandemic shortages and the Russia-Ukraine war.

“There are concerns that regulators could over-react by quickly closing the gap between interest rates and headline inflation numbers where central banks from the United States, the United Kingdom, Australia, South Korea and Brazil are raising their benchmark interest rates so far in 2022,” it said.

TAIM added that the market is extremely volatile and uncertain as to how high inflation can surge with recent debate revolving around whether the prescription of raising interest rates is the right medicine or worsens the situation.

“Investing in such market conditions is challenging and the uncertainties can scare many investors away. As such, we have to be firm in our fundamental views and remain focused on our long-term investment objectives.

“Sporadic weaknesses in the market are expected but also presents great investment opportunities for some investors. The current worries about inflation, war and shortages should ease given time and a quicker reopening of the world economy to travel and trade should help alleviate some of these pressures,” TAIM said.

TAIM said its immediate strategy is to seek either value or oversold stocks that should have limited downside but are sensitive to positive news.

“We believe that fund managers need to be sector and stock specific to increase the chances of generating decent returns. Hence, we remain positive on sectors that will benefit from the full re-opening of the economy such as airlines, airports and consumer goods that tourists will buy or consume.

“Oversold technology stocks are also good for technical rebounds and future prospects,” it said.

According to its latest press release, TAIM stated to have a total asset under management (AUM) of RM10.74 billion as of April 30, 2022, being a combination of unit trust funds and direct mandate portfolios under its management.