To achieve the objective of the Fund, the Provider will at all times invest a minimum of 30% up to a maximum of 70% of the Fund’s net asset value (“NAV”) in Shariah-compliant equities and/or Shariah-compliant equity-related securities which would include the following:
- Shariah-compliant securities of companies listed on Bursa Malaysia and/or any other exchanges of countries regulated by an authority which is a member of the International Organization of Securities Commissions (“IOSCO”);
- Islamic derivatives; and
- Islamic collective investment schemes (“CIS”) which invest in Shariah-compliant equities and/or Shariah-compliant equity-related securities.
That part of the Fund’s NAV not invested in Shariah-compliant equities and/or Shariah-compliant equity-related securities will be invested in the following:
- sukuk and Islamic commercial papers carrying at least A3/ P2 rating by RAM Rating Services Berhad (“RAM”) (or equivalent rating by Malaysian Rating Corporation Berhad (“MARC”));
- government sukuk, Islamic treasury bills and other government approved or guaranteed sukuk;
- Islamic deposits with financial institutions;
- Islamic money market instruments such as Islamic negotiable instruments and Islamic accepted bills; and
- Islamic CISs which invest in sukuk and/or Islamic money market instruments.
Further, the Fund may invest up to 30% of the Fund’s NAV in foreign Shariah-compliant equities of companies which are domiciled in /listed in/ or have significant operations* in the Asia-Pacific markets, which include, but not limited to Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, Thailand, Taiwan, and Vietnam.
*Significant operations means the revenue, earnings, production facilities, assets and/or investments of a company are based in/ derived from the Asia Pacific region. The level of significance will be determined by the Fund Manager on a case-by-case basis based on his/ her research and judgement.
For the allocation of sukuk, the Fund may, for a period of 5 years from 23 July 2018 or until all three (3) core Funds reach RM25 million respectively (whichever is earlier), invest in Shariah-compliant Sukuk CISs managed by the Provider up to 70% of the Fund’s NAV in a single Shariah-compliant sukuk CIS.
The Fund is suitable for Members who:
- seek an additional retirement savings* scheme other than a mandatory retirement scheme;
- are not statutorily obliged to contribute to a mandatory retirement scheme;
- seek to invest in a Shariah-compliant investment; and/or
- are employers who wish to contribute on behalf of their employees having the characteristics members who have a moderate to high risk appetite and seek capital appreciation on their contributions.
*Please note that this Fund is neither capital guaranteed nor capital protected, therefore, a Member’s capital is neither guaranteed nor protected.