AmanahRaya Syariah Income Fund

Investment Objective

ARSIF aims to provide regular stream of monthly income* by investing in Islamic money market instruments and sukuk.

ANY MATERIAL CHANGES TO THE FUND OBJECTIVES WOULD REQUIRE UNIT HOLDERS’ APPROVAL.
*The income could be in the form of units or cash. Please refer to page 23 on the distribution mode.

Investment Policy and Strategy

ARSIF will invest in Islamic money market instruments and RM-denominated short to medium-term sukuk (with maturity of no longer than five (5) years) with a following minimum credit rating:

i. Short-term credit rating of P1 by RAM or MARC-1 by MARC; or
ii. Long-term credit rating of A1 by RAM or A+ by MARC.

If the credit rating of the instruments falls below the minimum rating, the Fund may dispose of the investment. However, the Fund reserves the right to maintain the investment if the downgrade is a temporary event.

The Fund may also invest up to 30% of the Fund's NAV in Islamic negotiable instruments of deposit with tenure up to five (5) years. The issuers of the Islamic negotiable instruments of deposit must have a minimum credit rating of A3 by RAM or A- by MARC.

In the event of a credit downgrade of the issuer below the minimum rating requirement or where the Manager at its discretion view that there is a likelihood of credit default, the Manager may decide to partially or fully unwind the particular instruments. A credit downgrade means that credit risk has increased but it does not mean that there will be a default. A credit downgrade will generally have no impact on the value of the Islamic negotiable instruments of deposit upon its maturity if a credit default did not occur. However, if the Manager chooses to unwind the instrument prior to its maturity, it may result in capital losses and these losses will be borne by the Fund and reflected in its NAV.

The Fund may also invest in Islamic CIS provided that such Islamic CIS is consistent with the investment objective of the Fund.

Although the Fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The Fund shall hold a minimum of 2% of the Fund’s NAV (or such other amount as may be agreed by the Manager and Trustee from time to time) in Islamic liquid assets such as cash and Islamic deposits.

Note: “Short-term credit rating" refers to the credit rating of an instrument for a period of less than twelve (12) months issued by credit rating agency whereas "long-term credit rating" refers to a credit rating for a period of at least five (5) years.

Asset Allocation

• At least 70% of the Fund's NAV will be invested in RM-denominated short to medium-term sukuk (with a term to maturity of no longer than five (5) years)
• Up to 30% of the Fund's NAV in Islamic money market instruments, Islamic negotiable instruments of deposit and Islamic liquid assets.