Malaysia’s First Equity ETF, FBM KLCI etf Declares Income Distribution

Malaysia’s first equity Exchange Traded Fund (ETF),1 FTSE Bursa Malaysia KLCI etf (“FBM KLCI etf”) has declared an interim net income distribution of 0.5 sen per unit. This income distribution payout is the first for FBM KLCI etf’s financial year ended 31 December 2018.

Investors are expected to receive income distribution payouts twice a year, if any.

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. Investors can buy into FBM KLCI etf which is listed on Bursa Malaysia with a minimum trading size of 100 units.

“Instead of an investor buying 30 individual stocks, our FBM KLCI etf would give an investor the exposure to a diversified basket of 30 largest Malaysian stocks without the challenge of specific company research. ETFs are listed on the main market of Bursa Malaysia and investors can buy and sell ETF units based on its current market price either online or via a remisier during trading hours. ETFs are also cost-efficient investment vehicles to buy and maintain in the long run as its annual management fees are lower compared to unit trust funds,” said Goh Wee Peng, Acting Chief Executive Officer of AmInvest.

FBM KLCI etf is managed by AmInvest, which is the funds management business under AmInvestment Bank. AmInvest also manages ABF Malaysia Bond Index Fund which is Malaysia’s only bond ETF.1 Currently, AmInvest dominates the Malaysian market as the largest ETF provider in the country with around RM1.5 billion worth of assets under management.2

For further details on FBM KLCI etf, please visit www.fbmklcietf.com.my.

Sources:
1 Based on the launch dates of the list of ETFs in Malaysia. Data extracted from Lipper for Investment Management by Lipper, a Thomson Reuters company as at 13 June 2018.
2 Based on the total fund value of the list of ETFs in Malaysia. From Lipper for Investment Management by Lipper, a Thomson Reuters company as at 31 May 2018. Data extracted 13 June 2018.