KUALA LUMPUR: AmInvest launched its Sukuk fund - AmIncome Sofwah -- on Wednesday which will invest in local Sukuk and Islamic money market instruments.
Its objective is to provide regular income via yearly income distribution, according to AmInvest, the fund management brand under AmInvestment Bank.
The principal officer and chief investment officer of AmIslamic Funds Management Sdn Bhd, Kevin Wong Weng Tuck said the Fund provides an opportunity to potentially reap higher Shariah-compliant returns compared to a general investment account-i over the medium to long term.
He said after four successive rate cuts in 2020, the Overnight Policy Rate is at an all-time low of 1.75%.
“Interest rates are expected to remain low given the downside risks on Malaysian gross domestic product growth emanating from strict measures to contain the Covid-19 pandemic, ” he said.
AmInvest chief executive Goh Wee Peng said against the backdrop of the prevailing low interest rate environment, the fund is suitable for retail and institutional investors seeking higher yields.
“We will rely on our stringent Shariah-compliant investment process coupled with superior credit selection for the fund’s sukuk portfolio by our in-house proprietary credit research unit to optimise returns for the fund within acceptable risk boundaries, ” she said.
The fund will be managed by AmInvest, which was named as the "Best Bond Fund Family Group Over Three Years" for the second year at the Refinitiv Lipper Fund Awards Malaysia 2021.
The fund is offered for subscription at an initial offer price of RM1 per unit until July 6.