TheEdge
KUALA LUMPUR: CIMB-Principal Asset Management Bhd has launched an Islamic money market fund as a tax-efficient alternative to traditional bank deposits that allows investors to wait out and see through the current market volatility by parking their funds in instruments with minimal risk.
In a statement yesterday, CIMB-Principal said CIMB Islamic Money Market Fund, a syariah-compliant fund that invests in short-term money market instruments maturing in less than a year, allowed investors to withdraw their cash anytime without penalty.
“The CIMB Islamic Money Market Fund gives investors a place to park their money with minimal risk. This fund also aims to provide stability by giving investors a potential steady stream of monthly income,” CIMB-Princiapl chief executive Datuk Noripah Kamso.
The Islamic money market instruments include Islamic accepted bills, Islamic negotiable instruments of deposit, Islamic repurchase agreements (Repo-I) as well as other Islamic fixed income instruments and placements of Islamic deposits with licensed financial institutions, all of which are highly liquid.
“Investors who are in the midst of restructuring their portfolio or simply waiting for the opportune time to make their next investment move will find CIMB Islamic Money Market Fund a suitable investment,” Noripah said. With an approved fund size of 100 million units, the minimum investment for the fund is RM5,000, with a unit selling price of RM1.
She said the new fund would invest 10% of its net asset value (NAV) in Islamic fixed income instruments and up to 90% in quality Islamic money market instruments. The fund is distributed by CIMB Wealth Advisors, CIMB Bank, CIMB Private Banking and Standard Chartered Bank.
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