ISLAMIC BANKING | Tony Chua, Malaysia

OSK-UOB starts offering global food Islamic equity fund

The fund will have a Shariah- compliant equity exposure of up to 98% of the fund's next asset value.

OSK-UOB Islamic Fund Management Bhd on Tuesday launched a first of its kind fund, the global food Islamic equity fund, to tap into the massive growth of the halal food industry.

Its chief executive officer Md Noor A Rahman said the fund is open to all and sundry.

He expects the fund size of RM200 million ($66,81 million) to be taken up by the year-end.

"We hope insurance companies will buy into this fund," Md Noor told reporters after its launch in Kuala Lumpur on Tuesday.

The fund will have a Shariah- compliant equity exposure of up to 98 per cent of the fund's next asset value to generate returns.

However, this might be lowered in favour of sukuk, Islamic money market instruments and Shariah-based deposits in order to help achieve the targeted return of 7 per cent.

View the full story in Business Times.

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