To provide short-term liquidity and income*, whilst maintaining capital stability by investing in a diversified portfolio of Islamic money market instruments.
*Distribution will be reinvested unless Unit Holders opt for distribution to be paid out.
Islamic Money Market EPF – MIS
13 November 2008
This Fund is suitable for you if you:-
seek regular income in a highly liquid Shariah-compliant investment;
have a short-term Shariah-compliant investment horizon of 1 year and below
This Fund will be managed to provide liquidity while providing income to the Unit Holders, if any.
This Fund is structured as an open-ended fund with a target allocation of 90% invested in Islamic money market instruments with a maturity period of less than 365 days. Up to 10% of the Fund’s NAV may be invested in Sukuk and Islamic money market instruments where both the investments will have a maturity period of more than 365 days but less than 732 days.
The investment approach is to focus on instruments that provide above-average yields compared to returns from savings and investment accounts.
These Islamic money market instruments may include Mudarabah Interbank Investment (MII), Wadiah Acceptance, Government Investment Issue (GII), Bank Negara Monetary Notes-i (BNMN-i), Sell and Buy Back Agreement (SBBA), Cagamas Sukuk, When Issue (WI), Islamic Accepted Bills (IAB), Islamic Negotiable Instruments (INI), private Sukuk, Ar Rahnu Agreement-I (RA-i), Sukuk BNM Ijarah (SBNMI), Commodity Murabahah.
The ratings of the Sukuk and Islamic money market instruments shall carry at least “BBB” and “P2” by RAM or similar rating by other rating establishment. However, the Manager will also have the flexibility to invest into unrated issuances. In this instance, the Manager will carry out an internal credit selection process before it is included into the Fund’s portfolio to mitigate credit and default risk. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the security in the best interest of the investors and dispose off the holdings within a reasonable time frame, taking into consideration prevailing market conditions and factors.
The Manager will also hold the option to invest into collective investment schemes that hold a similar investment objective as the Fund.
Policy on Active and Frequent Trading of Securities
The frequency of our trades will be dependent on prevailing market opportunities as well as liquidity needs
% of the Fund’s NAV
Islamic money market instruments (with maturity of less than 365 days)
90% to 100%
Sukuk and Islamic money market instruments (with maturity of more than 365 days but less than 732 days)
Up to 10%
The Manager will maintain a sufficient level of cash for liquidity purposes.
Minimum Initial Investment
Minimum Additional Investment
FEES & CHARGES
Sales Charge per Unit
Annual Management Fee
Up to 0.50% per annum of the NAV of the Fund.
Trustee Fee / Custodian fee
Up to 0.02% per annum of the NAV of the Fund (excluding foreign custodian fees and charges).