Eq8 Unveils World’s First Waqf ETF To Drive Socio-Economic Impact Investing

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 10 December 2024 – Eq8 Capital Sdn Bhd (“Eq8“), a member of Kenanga Investors Group (“Kenanga Investors”), has announced the listing of the world’s first Waqf-featured exchange-traded fund (“ETF“), the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF (“Waqf ETF” or “EQ8WAQF“), on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “Exchange“). The Waqf ETF aims to distribute income annually with half of the income distribution to be allocated as Waqf assets with the remaining half payable to unitholders. The launch is the result of a strategic collaboration between Eq8 and Yayasan Waqaf Malaysia (“YWM“) which was announced in June this year with YWM as the appointed Waqf administrator of the Waqf assets generated by the Waqf ETF.

“We are proud to announce the launch of the world’s first Waqf-featured ETF together with YWM, marking a significant milestone after months of dedicated effort. The Waqf ETF underscores Kenanga Investors unwavering commitment to advance impact investing, especially in today’s climate. 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. We perceive the launch to be in alignment with the government’s call for increased collaborations between religious bodies, the public and the private sectors in order to maximise potential for Waqf assets to fund projects such as education, healthcare, economic empowerment and environment. This reflects the spirit of Waqf in creating long-term, sustainable benefits for communities, fostering social equity, and addressing pressing societal needs”, said Kenanga Investors’ Executive Director and Chief Executive Officer, Datuk Wira Ismitz Matthew De Alwis.

The Waqf ETF represents a continuous commitment by Kenanga Investors and its group of companies to participate in the Securities Commission Malaysia’s Islamic Fund and Wealth Management Blueprint, Waqf-Featured Fund Framework alongside the enhancements to Bursa Malaysia’s Main Market Listing Requirements. The Waqf ETF is the third Waqf-featured product by the group that has been issued since the launch of the Kenanga Waqf Al-Ihsan Fund in 2021.

Umar Alhadad, Executive Director of Eq8, shared, “EQ8WAQF exemplifies how an Islamic capital market product can be innovatively developed to integrate investment returns while fostering inclusivity, sustainability, and shared prosperity. Through democratised access on the Exchange, investors will have the opportunity to access and achieve dual impact investing goals from the Waqf ETF. EQ8WAQF features an index lead scheme to generate dividends from the thoughtfully designed index which combines an income-focused strategy with a momentum-based approach. This innovative strategy aims to deliver higher dividend yields while providing investors with potential capital growth, positioning it as an advantageous alternative to traditional dividend-focused funds”.

“We are glad to continue our partnership with Kenanga Investors with the introduction of the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF. This Waqf ETF serves as an additional instrument in accommodating Yayasan Waqaf Malaysia’s efforts to grow Waqf assets and the wellbeing of the community with the distribution of the Waqf assets for the EQWAQF to be channelled towards economic empowerment, education, healthcare, and environmental causes. With the formation of innovative products like this, investors of all faiths may now take part in contributing towards the betterment of society. We look forward to working closely with more stakeholders across Malaysia to drive the growth and development of Waqf”, YWM’s Chief Executive Officer, Dr. Ridzwan Bakar explained.

Bursa Malaysia’s Chief Executive Officer, Datuk Muhamad Umar Swift, said, “We extend our congratulations to Eq8 and Yayasan Waqaf Malaysia on the launch of the world’s first waqf-featured ETF. the Exchange has observed a growing trend of investors opting for Shariah or ethical investing, given its close alignment with ESG investing. As such, the introduction of the EQ8WAQF is therefore timely and is expected to be well-received by investors, particularly those seeking financial returns while making a positive impact on society. Importantly, the EQ8WAQF supports our effort to broaden investment opportunities and foster inclusivity for investors, offering more products to encourage their participation in the capital market”. The Waqf ETF is the fifth addition to Eq8’s ETF product suite making it the largest ETF issuer in Malaysia. EQ8WAQF is suitable for investors seeking medium to long-term investment opportunities in liquid financial instruments with index-tracking features that focus on high-yield, dividend-paying Shariah-compliant equities.

For more information about Eq8, please visit www.eq8.com.my.

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The issuer is solely responsible for the content of this announcement.

Eq8 Capital Sdn Bhd (Formerly known as i-VCAP Management Sdn Bhd) 200701034939 (792968-D)

Eq8 is a wholly owned subsidiary of Kenanga Investors Berhad and was incorporated on 25 October 2007. Eq8 holds a Capital Markets Services Licence (CMSL) for fund management in relation to portfolio management which was issued by the Securities Commission Malaysia under the Capital Markets and Services Act 2007. Its principal business activity is the provision of Shariah-compliant investment management services.

Eq8 manages five equity ETFs that are listed on Bursa Malaysia. As at 30 November 2024, the asset under management is RM348 million.