KUCHING: Unit trust fund manager ASM Investment Services Bhd (ASM Investment) is introducing its new syariah-compliant, capital-protected fund that targets investors seeking to diversify their portfolios.
The ‘ASM Syariah Capital Protected Sector Linked Fund’, which was approved by the Securities Commission of Malaysia on November 22 this year, will have a fund size of 500 million units, offered to investors at RM0.50 per unit.
“The total net asset value (NAV) of the new fund will stand at RM250 million,” said ASM Investment’s assistant general manager for business development Azli Azman to reporters today during an investors’ briefing session on the fund held at a hotel here.
The new fund would be officially launched by Rural and Regional Development Minister Datuk Seri Mohd Shafie Apdal at the Marriott Putrajaya tomorrow (December 13). In addition, a similar briefing on the fund would also be held in Kota Kinabalu, also tomorrow.
On the new fund, Azli said now would be the right time for ASM Investment to launch a new product that could accommodate the current market situation. Adding further, he emphasised the fund as being fully-compliant to syariah principles, thus making it open to everybody – Muslims and non-Muslims alike.
“What we want is for our investors to feel secure while seeking out to diversify their investment portfolios where after the fund’s maturity period, investors’ capital will still be protected but at the same time, they will get to enjoy higher potential upsides in the market compared with other fixed deposits or other Islamic instruments,” he explained.
The ASM Syariah Capital Protected Sector Linked Fund would be closed for application on January 12 next year. With a three-year maturity period, 88 to 92 per cent of the fund’s NAV would be invested in Islamic Negotiable Instruments of Deposits (INIDs) – a type of fixed income securities purchased from banks with AA-rating. This portion range of the NAV would be the give-back guaranteed capital for investors.
“Only six to 12 per cent of the total NAV will be invested in Malaysian yariah-compliant equities,” said Azli.
The minimum initial investment would be RM1,000, with minimum subsequent investment at RM100. AmanahRaya Trustees Bhd would be the appointed trustee of the fund. Performance benchmark for this fund would be according to Bank Negara alaysia’s 12-month Kuala Lumpur Islamic Reference Rates (KLIRR) index, which is currently at 3.42 per cent.
Meanwhile, Azli mentioned that being sector-linked, the fund would also be invested into seven identified sectors out of the total 12 under the Economic Transformation rogramme (ETP).
“The investments will take advantage of growth prospects in these sectors, primarily healthcare, construction, trade and services, as well as oil and gas.
“It is all a matter of right timing. As such, investors should be taking this opportunity as we will only offer the fund for the next 45 days before closing,” urged Azli.
Currently, ASM Investment – a unit under Amanah Saham Mara Bhd – manages corporate party funds and 13 unit trust funds including six syariah funds. With the addition of ASM Syariah Capital Protected Sector Linked Fund, it now has seven Islamic funds.