KUALA LUMPUR (March 2): AmanahRaya Investment Management Sdn Bhd (ARIM) launched its AmanahRaya Syariah Income Fund (ARSIF), targeting a fund size of RM500 million at the end of this year.

“The target is high, but reasonable,” said ARIM managing director Mohamad Shafik Badaruddin.

He added that corporate investors were interested in the ARSIF fund due to its low risk investment, as the returns are higher than fixed deposits and not locked.

“Here the investors get to enter and exit freely,” he added. “The fund is suitable to invest in short-term fixed income which is very liquid.”

The group — a licensed asset management company under Capital Market and Services Act, and a wholly owned subsidiary of AmanahRaya Bhd — had initially launched the fund on May 5, 2022.

As of Jan 31, 2023, its fund size crosses RM200 million.

“ARIM has reached another milestone by launching its seventh unit trust fund,” said AmanahRaya group managing director Ahmad Feizal Sulaiman Khan, adding that ARSIF invests in short-term to medium-term Islamic bonds with maturities of less than five years.

ARSIF targets investors that seek low to medium risk profiles with exposure in sukuk, Islamic negotiable instruments of deposit and Islamic money market instruments.

The fund also aims to provide a regular stream of monthly income — either in units or cash — by investing in Islamic money market instruments and sukuk.

Its sector allocations were 12% for Islamic cash and money market, while 88% will be provided for sukuk.

ARSIF’s top holdings include Malaysian Resources Corp Bhd, Exsim Capital Resources Bhd, UEM Sunrise Bhd, WCT Holdings Bhd and Al Dzahab Assets Bhd.

The event was officiated by Deputy Finance Minister Steven Sim in Kuala Lumpur on Thursday (March 2).