Kenanga Investors Berhad (“Kenanga Investors”) has announced the launch of Kenanga Waqf Al-Ihsan Fund (“Fund”) with Yayasan Waqaf Malaysia (“YWM”) as the Fund’s appointed waqf recipient and administrator.
“Given that Kenanga Investors has been at the forefront of many of the industry’s pioneering and innovative achievements in the fund management industry, the next natural step for us is the expansion of our Shariah investments. The potential of waqf, an Islamic philanthropic-based vehicle, to positively impact the economic and social aspects of the disadvantaged will be immensely valuable. The Fund will serve as the launchpad for other similar ESG-linked products as part of Kenanga Investors’ move towards sustainable and socially responsible investing,” said Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer of Kenanga Investors.
The Fund is an open-ended investment vehicle investing in a diversified portfolio of Shariah-compliant equities, sukuk, 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.
The launch of the Fund is in line with the SC’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 YWM in the development of waqf since 2021’s National Budget 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.
Disbursement of waqf to projects within the identified sectors will be overseen by a joint committee comprising Kenanga Investors, YWM and Yayasan Pembangunan Ekonomi Islam Malaysia (“YaPEIM”). The beneficiary projects will be in line with the United Nation’s Sustainable Development Goals 2030 (“SDG 2030”). SDG 2030 comprises of 17 SDGs with its relevant targets.
YWM’s Chief Executive Officer, YBrs. Prof. Madya Dr. Amir bin Shaharuddin commented, “We are pleased to be able to work with Kenanga Investors in a capacity that will directly contribute to YWM’s core objectives which are to develop existing waqf properties, create new waqfs and to develop the ummah economy through waqf instruments. 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. 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.