MyETF MSCI SEA Islamic Dividend is an Islamic exchange traded fund (ETF) is scheduled to be listed in Main Market of Bursa Malaysia on 7th May 2015. The Islamic ETF fund will have a fund size of 500 million units with an initial issue price of RM1 per unit.
ETFs are essentially unit trust schemes that are listed and traded on a stock exchange. They are open-ended with a unique in-kind creation and redemption mechanism supported by a system of participating dealers and liquidity providers.
The Fund aims to provide investment results that closely correspond to the performance of the Benchmark Index, regardless of its performance. The Manager attempts to achieve an absolute value of tracking error of less than 3% between the Net Asset Value of the Fund and the Benchmark Index.
This fund is suitable for investors seeking a medium-to-long-term investment, wish to invest in a liquid financial instrument with an index-tracking feature that focuses on high dividend yielding syariah-compliant listed companies listed.
In MyETF MSCI SEA Islamic Dividend case, the Benchmark Index is MSCI South East Asia IMI High Dividend Yield 10/40 Index. The Benchmark Index shall comprise up to 30 Shariah-compliant companies listed on the stock exchanges in South East Asia countries with dividend yields that are at least 30% higher than the MSCI South East Asia IMI Islamic Index (“Parent Index”) yield.
As of end of 31st March 2015, the index dividend yield is 5.1%. At the Latest Practicable Date, the top 10 constituents of the Benchmark Index and their respective weightings are as follow.
| No | Company Name | Country of Listing | Weighting (%) |
|---|---|---|---|
| 1 | Keppel Corporation | Singapore | 9.12 |
| 2 | Philippines Long Distance Telephone Company | Philippines | 9.05 |
| 3 | Singapore Telecommunications | Singapore | 8.97 |
| 4 | PTT Public Company | Thailand | 6.78 |
| 5 | Ascendas India Trust | Singapore | 4.84 |
| 6 | Telekom Malaysia | Malaysia | 4.79 |
| 7 | Thai Vegetable Oil | Thailand | 4.75 |
| 8 | M1 | Singapore | 4.66 |
| 9 | UMW Holdings | Malaysia | 4.55 |
| 10 | Yangzijiang Shipbuilding Holdings | Singapore | 4.55 |
The ETF is managed by i-VCAP Management Sdn Bhd, which is wholly owned by Valuecap. CIMB Investment Bank Bhd is the fund’s principal adviser and placement agent, while CIMB Islamic Bank Bhd is the syariah adviser.
For those who are interested in MyETF MSCI SEA Islamic Dividend IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 22nd April 2015 at 5pm. Tentative balloting date is on 24th April while the allotment date is on 6th May 2015.
MyETF MSCI SEA Islamic Dividend stock name in Bursa Malaysia is “METFSID”.
For more information kindly read
- MyETF MSCI SEA Islamic Dividend prospectus in Bursa Malaysia webpage.
- MyETF MSCI SEA Islamic Dividend fund information in MyETF webpage.
What do you think about MyETF MSCI SEA Islamic Dividend Asia IPO? Are you going to subscribe?