RHB Sukuk Dana Haneef

Catering strictly to sophisticated investors, excluding those with US residency, the RHB Sukuk Dana Haneef – Series 4 seeks to secure Shariah compliant income through a 24-month Sukuk-focused strategy.

This closed-end fund with a period of two years offers investors medium-term exposure to high-grade Malaysian Sukuk, with a built-in liquidity buffer and active risk management levers – using the 12-month Commodity Murabahah Deposit-i rate published by RHB Islamic Bank as the benchmark.

Launched on the 7^th April 2025, this fund allocates a minimum of 90% of its NAV to investments in Shariah compliant fixed income instruments – with at least 70% of NAV in Sukuk – while the remainder is invested in liquid assets like Islamic fixed income instruments and money market deposits.

“We focus on instruments offering competitive yields and credit quality, with a minimum rating of ‘A3’ from recognised domestic rating agencies,” said fund manager RHB Islamic International Asset Management.

“The portfolio will generally invest in fixed income instruments where the tenure closely aligns with the fund’s 24-month maturity. But where an exact match isn’t available, we may prioritize yield or credit quality as needed.”

This actively-managed structure gives the fund flexibility to respond to changing market conditions. In periods of volatility, the manager may adopt a fully defensive stance, reallocating up to 100% of assets into liquid Islamic instruments to safeguard capital and liquidity.

Distributions, when declared, are expected on an annual basis and may be paid from realized income, realized capital gains, or capital, depending on availability.

Initial entry is set at RM100,000 (US$23,555) with subsequent subscriptions in multiples of RM50,000 (US$11,777) for individual investors with minimum net worth of RM3 million (US$706,616) as well as institutions like pension funds or those with a similar operational focus.

A threshold minimum of 100 units applies for holdings in this fund and transfers are only allowed between sophisticated investors. Investors do not have any cooling-off rights for investments in this fund.

Early exits from this fund are allowed with a fee up to 3% of NAV for units redeemed, but no charge will be imposed on automatic redemption of units on the maturity date – which can be extended beyond the proposed two-year period.

*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.