As a Malaysian wholesale fixed income offering for sophisticated investors, the Berjaya Mutual Shariah Enhanced Income Fund adopts a low risk, active management strategy to provide regular income from short- to medium-term instruments with a relatively high level of liquidity.
While the aim is to eventually have monthly distributions where viable, this fund applies automatic reinvestment as the default for capital compounding. Investors will need to specifically elect otherwise to receive cash distributions, said Fund Manager Awang Hanaffie Awang Mohammad.
Another built-in convenience will address odd lot holdings arising from this reinvestment policy. “We introduced an automatic redemption clause. This serves as an administrative safeguard to address negligible balances such as fractional reinvestments or redemptions that may not be economical to maintain in the register.
“It does not contradict our no-minimum-holding policy but provides flexibility should minimum holdings be introduced in the future.”
Entry into this fund is set at a minimum RM100,000 (US$23,778), with subsequent investments in similar batches – as are redemption lots. Launched on the 28th August 2025, this fund is benchmarked against the one-month Maybank Islamic Fixed Deposit-i rate.
The fund invests at least 60% of NAV to rated or unrated Sukuk, with up to 40% in short-term Islamic money market instruments, cash or equivalents. The fund manager retains flexibility to invest in a single issuance instrument or a related-party issuer – but no foreign investment is allowed.
“While the fund is primarily focused on direct Shariah compliant securities, we have also built in the flexibility to allocate into local Islamic collective investment schemes approved by the Securities Commission Malaysia,” Awang Hanaffie explained.
“This provides us with liquidity management tools, diversification through specialist sub-strategies and operational flexibility to maintain exposure during cash flow movements.”
The fund’s assets may not be pledged for financing purposes, which is strictly limited to a month’s period and only for meeting redemption requests.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as recommendations for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Berjaya Mutual Shariah Enhanced Income Fund | |
| Fund manager | Berjaya Mutual |
| Launch date | 28th August 2025 |
| Asset class | Shariah compliant money market instruments, Sukuk |
| Base currency | Malaysian ringgit (MYR) |
| Initial investment | RM100,000 (US$23,778) |
| Unit price | RM1 (US$0.24) |
| Investment objective | To generate regular income through investments in Shariah compliant fixed income securities and short-term ringgit-denominated Islamic money market instruments |
| Benchmark | One-month Maybank Islamic Fixed Deposit-i rate |
| Risk profile | Low to medium |
| Distribution | Distribution, if any, will be made periodically, including potentially on a monthly basis, automatically reinvested unless cash-out option is specified |
| Management fee | 0.5% per annum of the fund NAV |
Source: Berjaya Mutual
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