Kuala Lumpur-based TA Investment Management (TAIM) has launched an Islamic three-year, closed-end fund aimed at high net worth investors.
The TA Dana Principal Preservation Robotic Theme fund will invest at least 90% of its net asset value in Islamic “negotiable instruments” of technology companies and/or Islamic “money market instruments of financial institutions”.
A maximum 10% will also be invested in Islamic certificates, including certificates of deposit.
Negotiable instruments, which includes cheques, certificates of deposit and promissory notes, is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand.
Issuers of securities that the fund invests in must have at least a single-A rating from Rating Agency Malaysia.
Wong Mien, chief executive of TAIM, said the fund “comes with 100% capital preservation and has a potential pay-out of 9% per annum”.
Its only available to individuals who have net assets of more than RM 3m ($715,000). The fund is open for subscription at one ringgit per unit until 4 January 2019.
There will be a sales charge of up to 3% of the offer price. A penalty fee of up to 3% of the fund’s net asset value per unit will also be imposed on early redemption before maturity in January 2022.
TAIM also launched in September an All China Equity Fund aimed at Malaysia’s qualified investors, FSA reported earlier. The fund is a locally-wrapped version of Investec’s All China Equity Fund, which invests in both onshore and offshore assets.
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