Monday, 17 March 2008

Kuala Lumpur - CIMB-Principal Asset Management today announced the launch of the CIMB Islamic Money Market Fund, a Shariah-compliant fund that invests in short term money market instruments maturing in less than a year. 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.

Datuk Noripah Kamso, Chief Executive of CIMB-Principal Asset Management Berhad, said: “The CIMB Islamic Money Market Fund gives investors a place to ‘park’ their money with minimal risk. This fund also aims to provide stability by giving investors a potential steady stream of monthly income. “

The Islamic money market instruments include Islamic accepted bills, Islamic negotiable instruments of deposit, Islamic repurchase agreements (Repo-I) as well as other Islamic fixed income instruments and placements of Islamic deposits with licensed financial institutions, all of which are highly liquid. “Investors who are in the midst of restructuring their portfolio or simply waiting for the opportune time to make their next investment move will find CIMB Islamic Money Market Fund a suitable investment,” added Datuk Noripah.

The minimum investment for the fund is only RM5,000.

The CIMB Islamic Money Market Fund will invest 10% of its net asset value (NAV) in Islamic fixed income instruments and up to 90% of its NAV in quality Islamic money market instruments. The fund is distributed by CIMB Wealth Advisors, CIMB Private Banking, CIMB Bank and Standard Chartered Bank. The initial selling price per unit is RM1.00, and the approved fund size is 100 million units.