Southern Bank Offers Two New Syariah Funds

News

11 October 2004

Bernama

Southern Bank Offers Two New Syariah Funds

Southern Bank and its unit trust company, SBB Mutual, will offer customers greater investment options with the launch of the SBB Dana Al-Ikhlas (Ikhlas) equity fund and the SBB Dana Al-Hafiz (Hafiz) bond fund.

In a statement Monday, the company said that two new Syariah funds were developed in line with the capital market master plan and efforts to establish Malaysia as an international hub for the Islamic capital market.

With the launch, SBB Mutual is now the largest private Syariah fund provider in the country offering investors a choice of eight Syariah funds with a total approved Islamic fund size of 5.4 billion units.

Both the funds are now available through all Southern Bank branches and SBB Mutual's agency network.

Southern Bank had underwritten RM100 million of each of the funds to boost its range of unit trust products in its retail banking business.

SBB Mutual chief executive officer, Paul Low said: "Ikhlas is an Islamic equity growth fund and a minimum of 70 percent investment will be made in Syariah-compliant stocks which have equally strong qualitative and quantitative fundamentals."

"The equity fund represents a good long term investment for investors with a tolerance for short term fluctuations and liquidity risks in exchange for long term higher capital gains."

"As for the Hafiz bond fund, meanwhile is suitable for diversification purposes as bonds by nature have a negative correlation with the equity market. Investors should look at Hafiz as a core holding in their investment portfolio as bonds can reduce portfolio risks," added Low.

The new funds, he said were designed for investors who prefer greater choice through different market instruments whilst preferring Syariah-compliant investments.

SBB Mutual is one of Malaysia fastest growing unit trust management companies with a total approved fund size of 15.85 billion units.

The company manages 26 funds and is also an institutional unit trust distributor for five reputable fund houses.