KUALA LUMPUR, Aug 23 (Bernama) — OSK-UOB Islamic Fund Management Bhd expects its pioneer fund, Global Food Islamic Equity Fund (GRIEF), to be fully taken up by year-end.
The fund, which will tap into the massive potential growth of the halal food industry, has an approved fund size of 400 million units or RM200 million (US$67.36 million). (US$1=RM2.97) Chief Executive Officer Md Noor A. Rahman is optimistic over the fund as it is the world’s first halal fund.
He said the global halal food segment currently accounted for approximately 16 per cent of the world food market valued at US$662 billion as of 2010.
“Hence, increasing global demand for food coupled with the growth of the halal food industry have resulted in a niche market that we have capitalised upon to offer investors investment opportunities,” he told reporters after launching GRIEF Tuesday.
Focusing on investing its assets in Shariah-compliant equities and equity-linked securities of companies involved in the food industry globally, this fund aims to achieve medium-to-long-term capital appreciation with targeted return of seven per cent. “This fund is open to all potential investors, either individual or institutional, regardless its nationality, at an initial price of 50 sen per unit,” he said, adding that investment companies are currently in discussions to appoint a distributor in the Gulf Cooperation Council member countries.
The fund’s initial offer period is until Aug 31 with the initial minimum investment amount of RM1,000 (US$336). (Bernama)