theSun | THURSDAY JULY 16 2009
business
AmIslamic targets
RM75m for new fund
by Eva Yeong
newsdesk@thesundaily.com
KUALA LUMPUR: AmBank Group’s
Islamic banking subsidiary AmIs-
lamic 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-com-
pliant 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 mil-
lion 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 under-
performing asset classes and takes
1.6bil ASM units
offered to all
M’sians from July 21
KUALA LUMPUR: Permodalan
Nasional Bhd (PNB) will be of-
fering the remaining 1.6 billion
Amanah Saham Malaysia (ASM)
units, including those initially set
aside for bumiputras, for sub-
scription 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 with-
out any maximum investment
limit depending on the amount of
units left. Sales for the additional
ASM units are based on a first-
come, 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, bu-
miputra 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 bil-
lion 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
œ 15
ANWAR FAIZ/THESUN
AmIslamic
Bank
Organisational
Services
general
manager
Jamaiyah
Mohammed
Nor, Mahdi,
advantage of bull markets,” said AmBank (M)
Mahdi. It also provides diversified Berhad head
exposure to four indices namely eq- of Retail
uity, energy, agriculture and metal. Distribution
According to AmBank (M) Bhd Brad Gravell
structured products, treasury and Hoe at
and markets senior manager Hoe the launch
Cheah Kit, the four-year product of NID-i
uses a three-month average as its yesterday.
momentum indicator before de-
ploying 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.
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 participa-
tion,” 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 inves-
tors. Among them are Amanah
Saham Wawasan (1.7 billion),
Amanah Saham Didik (1.6 bil-
lion), Amanah Saham Nasional
(921 million) and Amanah Sa-
ham 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 an-
nounce 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 bil-
lion units. – Bernama