Islamic Banking

Malaysian Fund Manager Launches Shariah-Compliant Fund

Vanessa Doctor, Asia Correspondent, 14 December 2011

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ASM Investment Services, the Malaysian unit trust and fund management firm, has launched a new shariah-compliant fund that targets investors looking to diversify their portfolios. 

The ASM Syariah Capital Protected Sector Linked Fund received approval from the Securities Commission of Malaysia in 22 November and was allowed to have a fund size of 500 million units. It will be offered to investors at RM0.50 per unit, leading to a total net asset value of RM250 million. The fund is open to Muslims and non-Muslims alike. 

"What we want is for our investors to feel secure while seeking out to diversify their investment portfolios. After the fund's maturity period, investors' capital will still be protected while they get to enjoy higher potential market upsides compared with other fixed deposits or other Islamic instruments," said Azli Azman, assistant general manager for business development, at a briefing with local journalists at the Marriott Putrajaya hotel. 

The new fund has a three-year maturity period within which 88 to 92 per cent of the net asset value will be invested in Islamic Negotiable Instruments of Deposits, a type of fixed income security purchased from banks with AA rating. Only around six to 12 per cent of the NAV will be exposed to Malaysian shariah-compliant equities. 

The minimum initial investment is RM1,000 ($314) with a minimum subsequent investment of RM100. It will be closed for application on 12 January 2012. 

The addition of the new fund now brings ASM's total Islamic funds to seven. Overall, ASM Investment manages 14 unit trust funds. 

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