i-VCAP Management allocates RM8.8m for 3 ETFs

By MARK RAO / Pic By AFIF ABD HALIM

i-VCAP Management Sdn Bhd declared a total income distribution of RM8.75 million for three of its exchange-traded funds (ETFs) for the financial year ended Dec 31, 2017.

The distribution is under its MyETF series of Shariah-compliant ETFs or a pool of stocks benchmarked against a market index, and comprises the MyETF Dow Jones Islamic Market Malaysia Titans 25 (MyETF-DJIM25), MyETF MSCI-Malaysia Islamic Dividend (MyETF-MMID) and MyETF MSCI SE Asia Islamic Dividend (MyETF-MSEAD).

Unit holders for the local underlying ETFs, MyETFDJIM25 and MyETF-MMID, will receive 2.39 sen and 2.81 sen per unit respectively, while the MyETF-MSEAD which provides exposure to five regional markets is set to distribute 1.51 sen per unit.

The entitlement date for the income distributions is on March 5 this year, ahead of payment later that month on March 29, and will largely be derived from dividend income each fund receives from its respective equity holdings.

i-VCAP CEO Khairi Shahrin Arief Baki (picture) said the unit trust manager is planning to raise awareness on ETFs among institutional and retail investors alike, while ramping up its digital capabilities.

“In particular, we hope to strengthen our presence on the digital front, be it through social or roboadvisory platforms, not only to attract experienced investors, but to also engage new, millennial investors into considering ETFs,” Khairi Shahrin Arief said in a statement yesterday.

i-VCAP is looking to introduce more ETFs this year covering different asset classes, geographies or currencies.

The company launched its MyETF Dow Jones Islamic Market US Titans 50 on Jan 15 this year with an approved fund size of up to 500 million units at an issue price of US$1 (RM3.92) per unit.

Slated for Main Market listing on Feb 28 this year, the ETF will be the first US dollar-denominated Shariahcompliant security and the sixth Shariah ETF to be listed on Bursa Malaysia.

In the local market, total assets for ETFs listed on Bursa Malaysia grew by 4.2% year-on-year (YoY) to RM1.96 billion in 2017, supported by take-up by inst itutional investors.

Retail investors’ participation in the market demonstrated continued interest, but at a slower growth.

Globally, total ETF assets increased by 37% YoY to US$4.66 trillion last year as institutional investors in developed markets use ETFs as core holdings when structuring their portfolios.

This ranges between 30% and 60% to form the base and manage beta of an institutional investors’ portfolio, while the remaining allocation goes to individual stocks for alpha.