Category of Fund

Money Market

Type of Fund

Income

Investment Objective

The Fund seeks to provide a regular* stream of income by investing in Shariah-compliant short-term debentures, money market instruments and placement in short-term deposits.

Note:
*The Fund shall distribute income (if any) on a quarterly basis. The distribution of income will automatically be reinvested. Hence, Unit Holders will receive additional Units from the reinvestment of income distribution. Any material changes to the investment objective would require Unit Holders’ approval.

Investment Policy and Strategy

The Fund is a money market fund that is actively managed to provide a regular* stream of income. Consequently, the investments of the Fund are largely confined to placement of Shariah-compliant short-term deposit instruments with financial institutions, short-term Sukuk issued by the Malaysian Government, Government-backed agencies, BNM and/or Malaysian Corporations which carry a minimum credit rating of AA3 by RAM or AA- by MARC or equivalent credit rating by recognised credit rating agencies and money market instruments, including Shariah-compliant accepted bills, banker’s acceptance, certificates of deposits, commercial paper of companies carrying a minimum short-term credit rating of P1 by RAM or MARC-1 by MARC or any equivalent credit rating by recognised credit rating agency.

Note:
*The Fund shall distribute income (if any) on a quarterly basis. The distribution of income will automatically be reinvested. Hence, Unit Holders will receive additional Units from the reinvestment of income distribution.

Asset Allocation

The Fund’s property should only consist of permitted investments. Permitted investments are Shariah-compliant:

  • short-term debentures;
  • money market instruments; and
  • placement in short-term deposits.

The value of the Fund’s investments in permitted investments must not be less than 90% of the Fund’s NAV. The value of the Fund’s investments in permitted investments which have a remaining maturity period of not more than 365 days must not be less than 90% of the Fund’s NAV. The value of the Fund’s investments in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV.

  • At least 2% of the Fund‟s NAV in Islamic deposits and Islamic money market instruments.
  • At least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets

Benchmark

1-month General Investment Account (GIA) of Bank Islam Malaysia Berhad.

Note: Investors are advised that the actual portfolio of the Fund at any given time may consist of a combination of Shariah-compliant deposits, Shariah-compliant money market instruments and Shariah-compliant debentures of varying tenure and credit rating. Investors are to note that the risk profile of the Fund’s portfolio may be higher than the risk profile of the benchmark.

Specific Risks Associated with the Fund

  • Profit Rate Risk
  • Credit/Default Risk
  • Counterparty Risk

Investor Profile

Suitable for investors who:
  • Are conservative in nature
  • Prefer regular* income streams
  • Seek reasonable returns that commensurate with the low risks investments
  • Prefer a short-term investment horizon
  • Wish to temporarily liquidate or reduce exposure in equities

*Note:
The Fund shall distribute income on a quarterly basis. The distribution of income will automatically be reinvested. Hence, Unit Holders will receive additional Units from the reinvestment of income distribution.

Investor Risk Profile

Low

Distribution Policy

The Fund shall distribute income* (if any) on a quarterly basis.

*Note:
The distribution of income will automatically be reinvested. Hence, Unit Holders will receive additional Units from the reinvestment of income distribution.

Commencement Date

27 December 2001

Financial Year End

31 August

Manager

BIMB Investment Management Berhad

Trustee

ABB Trustee Berhad
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