BIMB Investment has unveiled BIMB Shariah IncomePlus Fund (BSIF), a wholesale Islamic fixed income fund.
BIMB Investment Management Berhad, a wholly owned subsidiary of Bank Islam Malaysia Berhad, has unveiled its new wholesale Islamic fixed income fund, the BIMB Shariah IncomePlus Fund (BSIF).
BSIF is a wholesale Islamic fixed income fund that aims to provide sophisticated investors with a low risk investment portfolio offering a regular monthly income distribution (in the form of cash or additional units).
The newly launched wholesale Islamic fixed income 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.
"We are pleased to launch BIMB Shariah IncomePlus Fund (BSIF), a fund that is tailor-made for corporate investors that seeks low risk investment but with higher returns than the traditional term deposits.
"The launch of this fund is 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," said BIMB Investment Chairman Mohamed Ridza bin Mohamed Abdulla.
The fund aims to provide a regular monthly income distribution (in the form of cash or additional units) and capital growth over the medium to long term investments.
BSIF is tax-exempted and tax vouchers will be shared with investors. 70%-90% of the fund will be invested in cash instruments and 10%-30% of the fund will be invested in Sukuk instrument.
Commenting on the launch of BSIF, BIMB Investment Chief Executive Officer, Najmuddin Mohd Lutfi said, "Corporates have witnessed the reduction of the overnight policy rate (OPR) by 100 bps this year alone, bringing the OPR level to 2.00%.
"Looking forward, the benign inflation outlook provides further room for monetary easing with prospects of another 25 bps cut from the current OPR level. BSIF is an alternative for corporate investors given the low deposit rate due the reduction of 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 return of 3.18% per annum (p.a) despite the current low interest rate environment."
BSIF 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. Investors may redeem their investments on any Business Day.
Through BSIF, sophisticated investors are able to purchase units of the fund with a minimum initial investment of RM10,000 with subsequent additional investments starting from RM5,000. BSIF annual management fee is 0.15% p.a with a trustee fee of 0.03% p.a.
BIMB Investment has won Malaysia’s Best Islamic Asset & Fund Manager for three consecutive years since 2017 and Best Risk-Adjusted Returns for ESG Principle Investments Fund Manager at the Alpha Southeast Asia Best Islamic Finance Awards 2019.
The company has also been awarded as the Best ESG Asset Manager of the year 2019 by The Asset Triple A Islamic Finance Awards 2019, an award in recognition of its significant contributions and achievements in ESG, sustainability and asset management in Asia.
Applications for units can be made directly via BIMB Investment’s Corporate sales team by calling the toll free no. at 1-800-88-1196 or email to firstname.lastname@example.org.
Unit Holders may obtain the daily Fund price and further information about the Fund from BIMB Investment website at http://www.bimbinvestment.com.my.