Malaysia’s Eq8 Capital, a unit of Kenanga Investors, has listed what it says is the world’s first waqf-featured exchange-traded fund on the local bourse.
Waqf, also spelt as wakaf, refers to an Islamic endowment of property held in trust and used for charitable or religious purposes. It can also be a religious or charitable foundation created by an endowed trust fund for beneficiaries.
Eq8 Capital’s newly-listed Waqf ETF tracks performance of the FTSE Bursa Malaysia EMAS Shariah Factor Enhanced Target Dividend Index, a benchmark that has gained 21.5% this year as of November 30, surpassing the 15% gain in all of 2023.
The ETF aims to distribute income annually, with half allocated as waqf assets, and the other half paid to unitholders, Kenanga Investors says in a statement on December 10, when the fund made its debut on Bursa Malaysia.
According to Ismitz Matthew De Alwis, chief executive officer and executive director of Kenanga Investors, the launch of the ETF underscores the company’s “unwavering commitment to advance impact investing”.
“Waqf is now widely recognised as a critical pillar of support for Malaysia’s socio-economic development and contributes to the United Nation’s Sustainable Development Goals,” he says.
Kenanga Investors has over 21 billion ringgit (US$4.71 billion) of assets under management, including 348 million ringgit managed by Eq8 Capital, which now has five ETFs listed on the local bourse.
The Waqf ETF closed its first trading day at 1.02 ringgit a unit, slightly over the initial public offering price of 1 ringgit, with 6,400 units changing hands.
