Category of Fund

Wholesale Islamic Money Market Fund

Type of Fund

Income

Investment Objective

The Fund seeks to provide liquidity* and current income**, while maintaining capital stability*** by investing in instruments that comply with Shariah requirements.

Note:
*liquidity refers to T or T+1 whereby T is the Business Day where a request/application to redeem is received by the Manager before the cut-off time.
**Income will be in the form of Units
***The Fund is not a capital guaranteed fund or a capital protected fund.
Any material changes to the investment objective would require Unit Holders’ approval.

Investment Policy and Strategy

BIMMF is a money market fund that is actively managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable level of current income. Consequently, the investments of BIMMF are largely confined to short-term Islamic debentures issued by the Malaysian Government,Government-backed agencies, BNM and/or Malaysian corporations which carrying a minimum credit rating of AA3 (RAM or equivalent) and money market instruments, including Islamic accepted bills, banker’s acceptance, certificates of deposits, commercial paper of companies carrying a minimum long-term credit rating of AA3 by RAM or AA- by MARC or any equivalent credit rating by recognised credit rating agency or minimum short-term credit rating of P1 by RAM or MARC-1 by MARC or any equivalent credit rating by recognised credit rating agency. Although the Fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

If the credit rating of any instrument falls below the minimum rating, the Fund may dispose the investment. However, the Fund reserves the right to maintain the investment if the downgrade is expected to be temporary.

Any investment decision will be made to achieve the maximum returns to the Fund after considering the risk involved.

Asset Allocation

The Fund may invest up to 100% of the Fund’s NAV in permitted investments which have a remaining maturity period of not more than 365 days. Only up to 10% of its NAV can be invested in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days. Permitted investments are:

  • Debentures (including Sukuk / Islamic bond); and
  • Islamic money market instruments.

The asset allocation between the various investment assets referred to above and the decision to invest, sell or trade are based on the decision of the Fund Manager who adopts an active fund management approach.

Benchmark

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

Specific Risks Associated with the Fund

  • Credit/Default Risk
  • Profit Rate Risk
  • Liquidity Risk
  • Concentration Risk

Investor Profile

The Fund is primarily suitable for low-risk Qualified Investors who are favoring safety of principal and stability of income but recognizes that it is possible to incur losses by investing in the Fund.

Investor Risk Profile

Low

Distribution Policy

The Fund will distribute income at least once a month, subject to availability of income.

Commencement Date

27 December 2001

Manager

BIMB Investment Management Berhad

Financial Year End

30 June

Trustee

AmanahRaya Trustees Berhad
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