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.
It is tailor-made for corporate investors seeking low-risk investment but with higher returns than the traditional term deposits, he added in a statement today.
He described the launch of the fund as timely given the current low-interest rate environment.
“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 invests in a portfolio combination of cash and Sukuk as underlying assets that offers a higher cumulative return to sophisticated investors while preserving their capital.
“70% to 90% of the fund will be invested in cash instruments and the balance will be in Sukuk instruments,” he added.
BIMB Investment CEO Najmuddin Mohd Lutfi called BSIF an alternative for corporate investors given the low deposit rate due to the reduction in the overnight policy rate (OPR).
“Exposure of at least 10% in high investment-grade sukuk provides a kicker to BSIF returns.
“Based on our indicative portfolio, BSIF has a potential to generate a return of 3.18% 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 for 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% with a trustee fee of 0.03% per annum. – June 2, 2020, Bernama
