THERE is bound to be religious inclination when one speak about Shariah-compliant investments although they are not confined to Muslims per se, but investors of all faiths who are seeking for more responsible investments in the portfolio.
A somehow similar concept applies to waqf, an Islamic philanthropic-based vehicle which is intended to positively impact the economic and social aspects of the disadvantaged in the society
On that basis, the Kenanga Waqf Al-Ihsan Fund is a fund open for all Malaysian investors – Muslims and non-Muslims alike – who believe in philanthropic values and the nature of sharing with no intention to reclaim credit.
“The fund will serve as the launch pad for other similar ESG (environmental, social, governance)-linked products as part of our move towards sustainable and socially responsible investing,” Kenanga Investors.Bhd executive director and CEO Ismitz Matthew De Alwis pointed out.
The fund is an open-ended investment vehicle investing in a diversified portfolio of Shariah-compliant equities, sukuk (Islamic bond), Islamic money market instruments and Islamic deposits.
In accordance with waqf principles, half of the derived income will be distributed to sectors such as education, healthcare, economic empowerment and environmental preservation or development.
“In Malaysia, social responsible investment (SRI) investing is growing increasingly popular due to the current social climate and we believe it is the perfect answer to address the concerns of many investors, especially those who are passionate about playing a bigger role in the communities they reside in,” asserted De Alwis.
The launch of the Kenanga Waqf Al-Ihsan Fund is in line with the Securities Commission’s Islamic Fund and Wealth Management Blueprint in 2017 and the Waqf Featured-Fund Framework introduced on 12 November 2020 which aims to facilitate the growth of the Islamic social finance segment.
“Kenanga Investors also serves as the first strategic partner to actively collaborate with the Yayasan Waqaf Malaysia (YWM) (which is the fund’s appointed waqf recipient and administrator) in the development of waqf since the Budget 2021 mandate last year which called for more engagements between YWM and government agencies, government-linked companies and the private sector to drive the development of waqf within the country,” De Alwis added.
“The concept of waqf is one of Islam’s core socio-economic institutions which encourages Muslims to be innovative in generating revenue and providing various goods and services to their respective communities,” remarked YWM’s CEO Dr Amir Shaharuddin
“We foresee that the fund will generate a considerable amount of awareness and interest due to its altruistic nature especially in today’s social climate which will lead to society empowerment and poverty alleviation”.
The Fund is suitable for philanthropic investors who also seek steady capital growth and income distribution by means of broad diversification and risk minimisation. The initial minimum investment amount will be RM1,000.00 with every additional investment at RM100.00. – April 16, 2021
