Aiming to provide sophisticated investors higher monthly returns compared to the average Malaysian deposit annual rates of 1.3% to 2.5%, the Maybank Islamic Strategic Income Fund targets an indicative 3.82% annual return – which is also withholding tax-exempted.
There are two classes of subscribers to this wholesale fund. Individuals with assets exceeding RM3 million (US$670,692) or annual income of over RM300,000 (US$67,069) fall in Class A for a RM250,000 (US$55,891) entry and RM50,000 (US$11,778) top-ups.
Institutional investors in Class B must meet a minimum RM10 million (US$2.24 million) subscription entry and RM5 million (US$1.12 million) for subsequent investments for this Shariah compliant fund, which was launched on the 4th November 2024.
The minimum holdings for Class A is 100,000 units while Class B must maintain 500,000 units – or their holdings will be automatically redeemed by the fund managers Maybank Islamic Asset Management.
CEO Belqaizi Taufik told IFN Investor the fund’s investment in ringgit assets will avoid any volatility caused by the foreign currency exposure. The fund invests at least 30% in RM-denominated Sukuk and up to 70% in Islamic money market instruments and deposits.
While preference is for government and sovereign-issued Sukuk, Belqaizi said the fund will also invest into private-issued Sukuk with a minimum credit rating of ‘AA3’ by RAM Rating Services or an equivalent rating by Malaysian Rating Corporation.
For deposits, a cap of 45% applies for the fund’s holdings in Maybank Islamic’s General Investment Account-i, which seeks stable returns through low- to moderate-risk investments into Maybank’s financing assets – like mortgage financing, hire purchase, unit trust financing and SME financing.
Benchmarked against the Maybank One-Month Islamic Deposit Rate, this fund aims for monthly distributions, which will be automatically converted into the issuance of new units.
Belqaizi said the fund has set its sights on potential assets under management of RM200 million (US$44.71 million) in the current financial year ending the 30th September 2025.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Maybank Islamic Strategic Income Fund | |
| Fund manager | Maybank Islamic Asset Management |
| Launch date | 4th November 2024 |
| Asset class | Sukuk, Islamic money market instrument and Islamic deposits, including Maybank Islamic’s General Investment Account-i |
| Base currency | RM |
| Initial investment | Class A: Minimum RM250,000 (US55,891), RM50,000 (US$11,778) subsequent Class B: Minimum RM10 million (US$2.24 million), subsequent RM5 million (US$1.12 million) |
| Investment objective | The Fund aims to provide unitholders with income distribution over a short to medium-term investment horizon |
| Benchmark | Maybank One-Month Islamic Deposit Rate |
| Distribution | Monthly distribution, automatically reinvested into additional fund units |
Source: Maybank Islamic Asset Management
