Financial Calculators
Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today launched the CIMB Islamic Deposit Fund, an ideal cash management tool to meet market demand for a liquid and low risk fund with no exposure to commercial papers.
Chief Executive, J. Campbell Tupling, said: “The Fund is for corporate investors seeking to invest in short-term Islamic deposits. Therefore investors with lower risk appetite may find this Shariah-compliant investment an offer that should not be missed.”
The Fund complements an existing spectrum of cash management tools by CIMB-Principal, and this new Fund is one that is of lowest risk. It also aims to provide stability by giving investors a potential steady stream of monthly income, while allowing them the convenience to “park” their money in short-term investments while deciding where to invest for the longer-term.
“Although the Fund has a monthly distribution policy, clients can deposit their money for as short as a week and still earn on daily interest. Therefore, investors who are in the midst of restructuring their portfolio or simply waiting for the opportune time to make their next investment will find the CIMB Islamic Deposit Fund a suitable investment,” continued Tupling.
The Fund seeks to achieve its objective by investing at least 95% of its net asset value (NAV) in Shariah-compliant deposits with financial institutions. The Fund will be actively managed to provide liquidity and to accommodate the short-term cash flow requirements of its Unit holders.
As a tax-efficient alternative to traditional bank deposits, the Fund seeks to provide potentially higher returns and allows investors to withdraw their cash anytime without penalty. It also completes a suite of money market funds offered by the Corporate Cash Management Unit (CCMU) at CIMB-Principal Asset Management Berhad. CCMU offers cash management solutions to institutions as an alternative to current cash solutions. As part of CIMB Group’s integrated solutions efforts, CCMU complements other services within CIMB Group such as International Banking and Transactional Services (IBTS), Cash Management, Liquidity Management, Treasury, BizChannel, Corporate Banking (corporate loans) as well as Investment.
The Fund has zero application fees with an initial selling price per unit of RM1.00 and an approved fund size of 400 million units. The minimum investment for the fund is RM10,000.
Read articles below which appeared in major dailies:
» Top