Halogen Shariah MYR Liquid Fund

Launched on the 13^th September 2025, the Halogen Shariah MYR Liquid Fund is structured as a wholesale Islamic fixed income vehicle for sophisticated investors, with liquidity being a key differentiator.

“We believe this is the first fund in Malaysia that features near-instant redemptions, while still aiming to deliver returns above any standard board rate one-month deposit with a bank,” Halogen Capital Executive Director Ahmad Fuad Alhabshi told IFN Investor.

Redemption proceeds can be received by investors as quickly as two minutes upon request, even on weekends and public holidays, when applied for between 8am and 10pm. With such a swift advantage, Ahmad said this fund is expected to appeal to multiple investor segments as “the liquidity goal does not have to be at odds with income generation”.

Aligning with the high liquidity perspective, the fund’s income distribution can be conducted on a daily basis and automatically reinvested. But investors who may prefer regular cash payouts will be able to request for such a facility from Halogen Capital.

Adopting an active strategy, the Halogen Shariah MYR Liquid Fund will invest at least 70% of the NAV in Islamic liquid assets – including money market instruments, current accounts and deposits. The remainder 30% will be held in ringgit-denominated Sukuk and Islamic debt instruments. These can be held either directly or indirectly via units of similar-profiled collective investment schemes.

With the average investment duration capped at one year, asset concentration limits will apply once the fund’s valuation surpasses the RM30 million (US$7.13 million) mark – where Sukuk of any single issuer is capped at 25% of NAV and a maximum 50% in an Islamic collective investment scheme. The fund’s AuM stood at RM4.64 million (US$1.1 million) on the 6^th October 2025.

The one-year investment period cap is also “to minimize the fund’s volatility as much as possible. Duration is one of the primary drivers of volatility in Sukuk funds,” Ahmad explained. “Short duration is the key to mitigating profit rate risk. Mathematically, the price of a longer-duration Sukuk falls more than a shorter-duration Sukuk for the same rise in yield.”

While the minimum entry is set at RM1,000 (US$237.69) and subsequently in RM100 (US$23.77) multiples, only qualified sophisticated investors can subscribe to this wholesale fund.

Ahmad said the firm expects the strongest demand to come from corporations, where effective cash and treasury management is a constant priority. “We are also seeing a growing number of companies that want to build and diversify their digital asset treasury.”

As this liquid fund can store cash balances with daily income and near-instant redemption, it offers flexibility to quickly reallocate into other asset classes within the Halogen Capital ecosystem – like the Bitcoin and Ethereum funds – as part of a broader treasury strategy.

The firm also anticipates interest from individual investors who may use the liquid fund as a temporary store of larger amounts, to avoid daily constraints of digital retail cash transfers, for instant switching in and out of Halogen Capital’s crypto-asset funds.

At present, Halogen Capital offers eight public funds, with all being Shariah compliant – except for the Halogen Absolute Global Growth Fund, launched on the 21^st May 2025.

*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.

Source: Halogen Capital