RHB Shariah Multi Asset Fund

With its offering limited to sophisticated investors, the RHB Shariah Multi Asset Fund functions as a wholesale feeder fund providing access to global diversification across a wide range of asset classes – including equities, listed real estate, Sukuk and commodities.

“This initiative is in response to the growing demand for Shariah compliant investment solutions, particularly within the global multi-asset space,” said RHB Asset Management CEO and Managing Director Ng Chze How.

Launched in collaboration with HSBC Bank Malaysia, this RHB fund will primarily invest in the US dollar-denominated share class of the HSBC Global Funds ICAV (Irish Collective Asset-management Vehicle) – Shariah Multi Asset Fund, a UCITS-compliant vehicle domiciled in Ireland.

A key differentiator of the fund is its multi-currency structure, which caters to a broad investor base across jurisdictions. The fund is available in eight currency classes: US dollar, Malaysian ringgit, RM-Hedged, Singapore dollar, Australian dollar, euro, British pound and Chinese renminbi.

The offer price for each class was set at one unit in its respective currency, applicable to both the minimum initial subscription and additional investments. The offering opened on the 30^th April 2025 and ended on the 20^th May 2025.

The assets are pooled and invested as a single fund, not segregated in respect of each class. While unitholders have the same rights and liabilities, a separate NAV per unit will be calculated for each class.

The fund may participate in Islamic financial derivatives, which can include Islamic forwards and swaps, to hedge currency risk exposure of the various currency classes as the primary interest is to protect the value of the various currency classes. Any gains, losses or expenses from hedging each of the non-US dollar class will be borne by the respective currency class.

As the target fund incepted on the 2^nd October 2023 is a sub-fund of the HSBC Global Funds ICAV, the equities investment will not necessarily be selected from any industry sector or country and may be of small, medium or large market capitalization, with no specific target allocation.

While the entire of the target fund’s NAV can be invested in units or shares of Shariah compliant eligible collective investment schemes, including ETFs, a 40% cap applies for placements in fixed income securities, which may have a fixed or floating rate.

The target fund may only gain exposure to commodities using exchange traded commodities assessed as UCITS-eligible transferable securities, with a 20% NAV limit. Cash holdings can be a maximum of 10%. In adverse markets where economic, political or any other market conditions prevail the fund may hold up to 100% of its assets in Islamic liquid assets as a defensive strategy.

Substantial investments can be made in emerging market countries – which include Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Greece, Hungary, Kuwait, Poland, Qatar, Saudi Arabia, South Africa, Turkiye, the UAE, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand.

The fund may distribute income from realized income, realized capital gains and/or capital – which can also be invested in other transferable securities and foreign direct investments.

“Its quarterly income distribution feature further enhances appeal for yield-seeking investors, though we are transparent about the risk of capital erosion.”

*Disclaimer:  The opinions and viewpoints expressed in this 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.

Source: RHB Asset Management