Thursday 28 Mar 2024
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KUALA LUMPUR (June 5): MIDF Amanah Asset Management Bhd will be introducing a new Shariah Equity Wholesale Fund for high net worth investors with a target to raise RM100 million within the first year of its launch.

This is part of the asset management arm of Malaysian Industrial Development Finance Bhd's (MIDF) move to join the Shariah-complaint fraternity.

MIDF's Amanah International Finance Sdn Bhd and its development finance division have also transitioned into fully Shariah-compliant entities.

The fund will have two special key features; the first being that the fund will have zero entry fee, which means no sales fee or upfront fee will be charged to investors. Secondly, the fund will pay zakat on behalf of its investors.

"The latter feature on payment of zakat will provide Muslim investors much convenience as they will not have to worry about the zakat due on their respective investments as all annual income distribution will be net of zakat," it said in a statement today.

MIDF Amanah, which currently records assets under management of RM4.1 billion as at April 30, 2017, will also be introducing other new products in the Islamic wealth management space.

MIDF Amanah chief executive officer Azlan Hussin said, "MIDF Amanah has been diligently marketing Islamic financing and investment products to our customers and we have also continued to develop talent to facilitate our organisation's eventual transformation into a Shariah-compliant entity."

The equity portfolios under MIDF Amanah have seen an overall exceptional performance in the first quarter this year with gains ranging from 10% to a high of 15%, it said.

"For this quarter, in terms of asset class performance, equity portfolios have significantly surpassed the benchmark KLCI that only gained around 6% during the same period," said MIDF Amanah.

MIDF Amanah also noted that equity portfolios with high content of small to mid-cap stocks tend to outperform the bigger-cap portfolios during this period.

The investment bank's group managing director Datuk Mohd Najib Abdullah said the conversion of the asset management arm into a Shariah-compliant entity will cater to the ever growing demand for Islamic finance products and services.

 

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