BIMB Investment launches new wholesale Islamic fixed income fund

KUALA LUMPUR: BIMB Investment Management Bhd ( BIMB Investment), a wholly- owned subsidiary of Bank Islam Malaysia Bhd, has unveiled a new wholesale Islamic fixed income fund named BIMB Shariah IncomePlus Fund ( BSIF).

Chairman Mohamed Ridza Mohamed Abdulla said BSIF aims to provide sophisticated investors with a low-risk investment portfolio while offering a regular monthly income distribution in the form of cash or additional units.

“We are pleased to launch BSIF, a fund that is tailor-made for corporate investors that seeks low-risk investment but with higher returns than the traditional term deposits,” he said in a statement yesterday.

He said the launch of the fund is timely given the current low interest rate environment.

DOWN

“BSIF offers corporate investors the opportunity to diversify and rebalance investment portfolio in cash and high investment-grade Sukuk,” he said.

Mohamed Ridza said BSIF is tax- exempted and tax vouchers would be shared with investors.

He said the fund invested in a portfolio combination of cash and Sukuk as underlying assets that offered a higher cumulative return to sophisticated investors while preserving their capital.

“70 to 90 per cent of the fund will be invested in cash instruments and 10 to 30 per cent will be invested in Sukuk instrument,” he said.

BIMB Investment chief executive officer Najmuddin Mohd Lutfi said BSIF is an alternative for corporate investors given the low deposit rate due to the reduction of overnight policy rate (OPR).

“Exposure of at least 10 per cent in high investmentgrade sukuk provides a kicker to BSIF returns.

“Based on our indicative portfolio, BSIF has a potential to generate a return of 3.18 per cent per annum despite the current low interest rate environment,” he said.

He said the fund is a highly liquid and flexible investment vehicle with no lock-in period and no penalty on partial withdrawal.

“BSIF fund offers daily liquidity which means that sophisticated investors can convert their units, wholly or partially, into cash,” he said.

He added that the minimum initial investment of the fund is RM10,000 with subsequent additional investments starting from RM5,000 while its annual management fee is 0.15 per cent with a trustee fee of 0.03 per cent per annum. — Bernama

THE Kuala Lumpur Tin Market (KLTM) closed US$100 higher at US$15,500 per tonne yesterday, in line with the tin price’s overnight uptrend on the London Metal Exchange (LME).

A dealer said LME tin closed US$270 higher at US$15,685 a tonne previous day.

“On the local front, tin price was supported by traders from China, Japan, South Korea, Taiwan, European countries, Pakistan and Bangladesh,” he said.

Turnover on the KLTM eased to 13 tonnes from 15 tonnes on Monday, while bids stood at 18 tonnes and offers at 13 tonnes.

The discount between the KLTM and the LME widened to US$185 per tonne from US$15 per tonne previous day.