PETALING JAYA – AMMB Holdings Bhd’s fund management arm AmInvest was named “Malaysia’s Best ETF Provider” at The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards 2016.

The Asset commended AmInvest for the ability to attract international investors allowing AmInvest to almost double the assets under management (AUM) of ABF Malaysia Bond Index Fund (ABF Malaysia).

AmInvest is the provider and fund manager for Malaysia’s first bond and equity exchange-traded funds (ETFs) namely ABF Malaysia and FTSE Bursa Malaysia KLCI etf (FBM KLCI etf).

Today, AmInvest commands 82% of the Malaysian ETFs’ market share. Of the total eight ETFs listed in Malaysia, ABF Malaysia is currently the only bond ETF in the market and is the largest ETF in Malaysia at RM2 billion in fund value.

“We are pleased that our ETF offerings, ABF Malaysia and FBM KLCI etf have been recognised as relevant to meet the evolving needs of our investors,” AmInvest CEO Datin Maznah Mahbob said in a statement last Friday.

“In a span of a year, ABF Malaysia’s fund value has experienced phenomenal growth of around 180%, indicating a strong appetite for sovereign risk in this low yield environment, which is now the new norm,” she said.

ABF Malaysia effectively buys into a portfolio of mainly Malaysian government bonds. It tracks the performance of Markit iBoxx®ABF Malaysia Bond Index.

Meanwhile, FBM KLCI etf is designed to follow the performance of its benchmark index, FTSE Bursa Malaysia KLCI (FBM KLCI). FBM KLCI can be seen as representing the barometer of Malaysia’s top 30 largest companies in terms of market capitalisation.

For both of the ETFs, investors can buy into a trading board lot size of 100 units, which is listed in Bursa Malaysia.

ABF Malaysia has clocked in a one-year return of 5.8% while FBM KLCI etf has registered a total return of -1.8% for the past one year. Both funds’ returns track their respective benchmark’s performance. – Sundaily