Thesun 2009-07-16 Page15 1

theSun

œ 15

| THURSDAY JULY 16 2009

AmIslamic targets RM75m for new fund by Eva Yeong [email protected]

KUALA LUMPUR: AmBank Group’s Islamic banking subsidiary AmIslamic Bank targets a fund size of RM75 million for its second Islamic Structured Deposit product. Launched yesterday, the new product is known as AmMomentum Select Islamic Negotiable Instrument of Deposit (NID-i), a deposit with a fixed tenure and returns linked to the performance of syariah-compliant underlying asset which may be equities, bonds, commodities, foreign exchange, indices or any combination of these assets. “This deposit is close-ended with a targeted size of RM75 million during the 30-day offer period,” said AmBank (M) Bhd retail banking executive director Mahdi Murad. The 30-day offer period begins July 20. Designed to provide investors with a “safe and profitable haven” to place their investments, the product uses momentum to decide how to invest into a portfolio of multiple assets. “It automatically avoids underperforming asset classes and takes

advantage of bull markets,” said Mahdi. It also provides diversified exposure to four indices namely equity, energy, agriculture and metal. According to AmBank (M) Bhd structured products, treasury and markets senior manager Hoe Cheah Kit, the four-year product uses a three-month average as its momentum indicator before deploying suitable amounts of clients’ investments into indices that are performing more positively. At the end of the first year, investors would get a payout of 2% in the form of Hibah, and 4% payout for second and third years if the momentum strategy is more than 102.5%. At the end of the fourth year, there will be a final variable payout. To take up AmMomentum Select NID-i, a minimum investment of RM70,000 is required. The product is sold across all AmBank Group distribution channels. “We are also looking to launch one more structured deposit by end of the year or early next year,” said Hoe. The upcoming launch would most likely be a conventional product, he said.

1.6bil ASM units offered to all M’sians from July 21 KUALA LUMPUR: Permodalan Nasional Bhd (PNB) will be offering the remaining 1.6 billion Amanah Saham Malaysia (ASM) units, including those initially set aside for bumiputras, for subscription by all Malaysians from July 21. PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said a maximum investment limit of 20,000 units would be imposed on each account holder for seven days until July 27. “Thereafter, investors can subscribe for the ASM units without any maximum investment limit depending on the amount of units left. Sales for the additional ASM units are based on a firstcome, first-served basis,” he told reporters here yesterday. The 1.6 billion units are part of the 3.33 billion additional ASM units announced by Prime Minister Datuk Seri Najib Abdul Razak when launching the 2009 Malaysian Unit Trust Week in Johor Baru on April 20. Of the 3.33 billion units, bumiputra investors were allocated 50%, Chinese 30%, Indians 15% and other races 5%. Previously, ASM units were open to Malaysians aged six months and above irrespective of race. ASM was launched in 2000 with an initial fund size of 2 billion units and all had been taken up within 21 days. Since then, new additional units have been offered six times totalling 7.63 billion. The trust units allocated for the Chinese

and Indians have been fully subscribed. Hamad said the quota on the additional 3.33 billion units was imposed for three months from April 21 to diversify investor profile. “The three-month period was sufficient to give all parties enough time to invest and to allow comprehensive participation,” he said. Asked whether PNB would lose if the bumiputra quota was retained, he said: “We can create new units when we want to lauch new products and we can add more. When we have the need for anyone to make additional investments, we can create new units.” PNB has various funds for subscription by bumiputra investors. Among them are Amanah Saham Wawasan (1.7 billion), Amanah Saham Didik (1.6 billion), Amanah Saham Nasional (921 million) and Amanah Saham Nasional 2 (2.2 billion). ASM was the second trust fund launched by PNB for all Malaysians. Asked on Amanah Saham 1Malaysia, Hamad said: “Let the prime minister make the announce announcement. The date has been set.” Najib, when speaking at a gathering on the occasion of his 100th day in office on July 11, said the government had agreed to PNB establishing a new unit trust fund called Amanah Saham 1Malaysia with a size of 10 billion units. – Bernama

AmIslamic Bank Organisational Services general manager Jamaiyah Mohammed Nor, Mahdi, AmBank (M) Berhad head of Retail Distribution Brad Gravell and Hoe at the launch of NID-i yesterday.

ANWAR FAIZ/THESUN

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