Published: Monday November 16, 2009 MYT 2:50:00 PM
Bank Islam targets RM100mil from new fund
KUALA LUMPUR: Bank Islam Malaysia Bhd has target an initial fund size of RM100 million from its newly launched Ziyad NID-i, an investment product, structured on the recovery of Asia's equity market.
Bank Islam general manager for its consumer banking division, Khairul Kamarudin said, the Ziyad NID-i is a five-year investment product in the form of Islamic negotiable instruments with a 100 percent capital protection upon maturity.
"Ziyad NID-i investors should receive a minimum profit of 7.35 per cent over the whole investment period or approximately 1.47 per cent per annum if held to maturity," Khairul said during the launch of the Ziyad NID-i on Monday.
He said the Ziyad NID-i is linked to a basket of stocks deemed to benefit from the massive stimulus plans undertaken by various Asian governments.
"The stocks in the basket are China Mobile Ltd (China), CNOOC Ltd (China), Panasonic Corp (Japan), Canon Inc (Japan), BHP Billiton (Australia) and KDDI Corp (Japan)," he said.
According to Khairul, the six chosen stocks are constituents of the Dow Jones Islamic Market Titans 100 Index, which consists of the world's largest 100 companies involved in Shariah-compliant businesses.
"They were selected based on trading and liquidity considerations as well as analyst recommendations.They also conform to geographical and sectoral diversification purposes along the lines of the Asian recovery theme," he said.
He said the stocks would be monitored closely throughout the investment period to ensure no infringement of Shariah rules and principles.
The minimum investment amount for the Ziyad NID-i is RM65,000 and subsequent investments are in multiples of RM5,000.
The product is available at all Bank Islam branches throughout the country, starting today.
Meanwhile, Khairul said there would likely be a new launch for Islamic deposit products before June next year.
"The market is regaining its confidence. We see an increasing demand for our products," he said.- Nernama