Eq8, Yayasan Waqaf Malaysia To Launch First Waqf Etf On Bursa Malaysia This Year

KUALA LUMPUR, June 12 (Bernama) -- Kenanga Investors Bhd’s wholly owned subsidiary Eq8 Capital Sdn Bhd announced a new strategic collaboration with Yayasan Waqaf Malaysia (YWM) for the launch of the first waqf-featured exchange-traded fund (ETF) on Bursa Malaysia this year.

Eq8 said that the collaboration is a continued partnership between its parent company and YWM  since the launch of the Kenanga Waqf Al-Ihsan Fund in 2021, followed by the Kenanga Sustainability Series: Emergency Waqf Musa’adah Fund in 2022.

Kenanga Investors executive director and chief executive officer, Datuk Ismitz Matthew De Alwis said the group will continue to spearhead the charge in promoting waqf-related capital market products. 

"We believe the new initiative will significantly contribute to the growth of the ETF market by drawing in investors who are not only interested in the financial benefits of ETFs, such as diversification and liquidity, but also in making a positive social impact through their investments. 

"By merging financial gains with social returns, we can appeal to a broader range of investors, fostering greater innovation and expansion within the ETF sector," he said in a statement.

Meanwhile, the executive director of Eq8, Umar Alhadad, shared that the new waqf-featured ETF is designed to achieve steady capital growth and income distribution by investing in a diversified portfolio that adheres to Shariah principles.

In accordance with the proposed waqf product feature, he noted half of the derived income would be distributed to sectors such as education, healthcare, economic empowerment and environmental preservation or development.  "Our dual impact investing approach ensures that investors can profit with purpose, making a significant difference in the community while achieving their financial goals," he added.

-- BERNAMA