First US dollar denominated security to be listed in Malaysia

0

Rosli (fifth left) along with other directors from ValueCAP, i-VCAP, Bursa and Securities Commission celebrating the launch of the MyETF-US50 yesterday.

KUCHING: i-VCAP Management Sdn Bhd (i-VCAP) yesterday launched the prospectus for its fifth Islamic exchange traded fund (ETF), the MyETF Dow Jones US Titans 50 (MyETF-US50).

MyETF-US50 will be the first US dollar denominated syariah-compliant security to be listed on Bursa Malaysia Securities Berhad, entirely tradeable in US dollars on the domestic bourse.

MyETF-US50’s initial approved fund size is up to 500 million units, with an initial issue price of US$1 per unit. The minimum size of a subscription application under the Initial Subscription is 100 Units, or whole multiples thereof.

Following the prospectus launch and initial offer period, the MyETF-US50 is expected to be listed on the Main Market of Bursa Securities on February 28, 2018.

MyETF-US50 aims to provide investment results that closely correspond to the performance of its Benchmark Index, the Dow Jones Islamic Market US Titans 50 (DJIM US Titans 50) Index, regardless of its performance.

Its Benchmark Index consists of the 50 largest Shariah-compliant US companies by float-adjusted market capitalisation.

These blue-chip companies include Apple Inc, Microsoft Corp, Facebook Inc A, Johnson & Johnson, Exxon Mobil Corp, Alphabet Inc C, Alphabet Inc A, Chevron Corp., Procter & Gamble, and Home Depot Inc, plus 40 more blue chip US companies.

Through MyETF-US50, investors can now add the top 50 blue chip US companies to their portfolio with a single investment. This allows investors easy access to the US equity market as a competitive syariah-compliant investment tool and an additional avenue for diversification in investors’ portfolios.

The DJIM US Titans 50 Index is highly correlated with the S&P 500 Index on a 5-year basis.

Rosli Abdullah, chairman of i-VCAP, said: “For most Malaysian investors, buying into a variety of syariah-compliant US blue chip stocks has previously been out of reach.

“The MyETF-US50 addresses this investment gap by making it easier for investors to access the US equity market in US dollars, marking a new chapter in the Malaysian capital market.

“The ETF provides an accessible way for investors to diversify their portfolios and manage risk through exposure to the US market with stocks that have passed rules-based screens for Shariah-compliance of S&P Dow Jones Indices.”

During the launch ceremony, i-VCAP also introduced their new Chief Executive Officer, Khairi Shahrin Arief bin Baki, who assumed the role on January 11, 2018.

Khairi joins i-VCAP from MIDF Amanah Investment Bank, where he has served as senior director & head of Dealing, Equity Markets since 2015. He has extensive experience in equities, having held various equity sales roles at regional and international banking groups including Citigroup Global Markets, JP Morgan Securities, and Maybank Investment Bank. He started his career in 2003 at OSK Investment Bank.

The MyETF-US50 is suitable for investors seeking medium-term to long-term investment horizon in the constituent companies of the Benchmark Index as well as those looking for short-term arbitrage opportunities arising from the discrepancy between the net asset value (NAV) per Unit and the trading prices of the Units. Investors seeking to add geographical diversity to their investment portfolio may also invest in the Fund.

The launching of MyETF-US50’s Prospectus marks the start of the offer period for initial subscription via IPO, which will close at 5pm on February 9, 2018. Investors may subscribe via the Fund’s Placement Agents, CIMB Investment Bank Berhad, BIMB Securities Sdn Bhd, and Kenanga Investment Bank Berhad during the entire offer period.

For electronic and internet applications, the subscription window will be from 8:00am to 5:00pm on 9 February 2018 only. The MyETF-US50 will be listed on Bursa Securities and be available for trading on 28 February 2018.

Through the MyETF Series, i-VCAP’s four other Islamic ETFs are among nine ETFs listed in Malaysia. The products include MyETF Dow Jones Islamic Market Malaysia Titans 25 (MyETF-DJIM25), MyETF MSCI Malaysia Islamic Dividend (MyETF-MMID), MyETF MSCI SEA Islamic Dividend (MyETF-MSEAD), and MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness (MyETF-AGRI).

Upon its listing, the MyETF-US50 will be the tenth ETF listed in Malaysia, and the country’s sixth Shariah-compliant ETF.