BIMB ESG SUKUK FUND

Sukuk
Type of Fund
Income
Tags
Global SRI
Commencement Date
1 August 2018
Financial Year End
31 October
Investor Risk Profile
Moderate
Benchmark
Term Deposit-i Tawarruq of Bank Islam Malaysia Berhad 1-year rate
Manager
BIMB Investment Management Berhad
199301021508 (276246-X)
Trustee
SCBMB Trustee Berhad
(1005793-T)
Investment Objective

The Fund seeks to provide a stable income stream and an opportunity for capital appreciation over the medium to long term by investing in Sukuk both locally and globally.

Medium to long-term refers to 3 years or more.
Any material change to the investment objective of the Fund would require Unit Holders’ approvals.

Asset Allocation

  • Between 70% to 98% of the Fund’s NAV in Sukuk; and
  • at least 2%of the Fund’s NAV in in Islamic deposits

Investor Profile

Suitable for investors who:

  • are seeking fixed income payout;
  • are seeking exposure to local and global Sukuk;
  • have a medium to long-term investment horizon; and
  • have a moderate risk tolerance level.

Specific Risks Associated with Investing in the Fund

  • Sustainability Risk
  • SRI Investments Risk
  • Shariah Status Reclassification Risk
  • Credit and default risk
  • Rate of Return
  • Liquidity Fisk
  • Currency Risk
  • Country Risk
  • Political Risk
  • Regulatory Risk
  • Hedging Risk

Investment Policy and Strategy

The Fund will invest between 70% to 98% of the Fund’s NAV in Sukuk carrying at least a: (i) “A3” or “P1” rating by RAM or a “A-“ or “MARC-1” rating by MARC for Ringgit denominated Sukuk or (ii) “BBB-” or “A-3” rating by S&P or “Baa3” or “P-3” rating by Moody’s or “BBB-“ or “F3” by Fitch or equivalent rating by local rating agency(ies) for non-Ringgit denominated Sukuk. The remaining Fund’s NAV is maintained in the form of Shariah-compliant liquid assets to meet any redemption payments to Unit Holders. In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified portfolio of approved Shariah-compliant fixed income securities consisting primarily of Sukuk that will provide a steady stream of income. The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. The Fund will invest into countries where the regulatory authorities are ordinary or associate members of the International Organization of Securities Commissions.

Distribution Policy

Subject to availability of income, the Fund will distribute income on an annual basis.