Islam fund eyes S.E. Asia

Islam fund eyes S.E. Asia

KUALA LUMPUR (Reuter): DCB-RHB Unit Trust Management Bhd said that its new 300 million ringgit Islamic fund expects active subscription from institutions in neighboring South East Asian countries.

The Mudharabah Fund has received indications that at least 100 million ringgit would be subscribed by institutions from Singapore, Indonesia and Brunei, company officials told reporters at the fund's launching.

The remainder is expected to be subscribed by Malaysian and Middle East funds. The company is selling units in the fund at one ringgit each with minimum investment of 500 units.

"We would like to take a more regional approach in the fund," said Rashid Hussain Bhd (RHB) executive chairman, Abdul Rashid Hussain.

Financial group RHB owns 49 percent of the unit trust manager, with the remaining stake owned by DCB Sakura Merchant Bankers Bhd.

RHB owns 20 percent of DCB Sakura's parent, DCB Holdings Bhd.

Gaming, liquor and charging of interest on loans are among businesses forbidden by Islam and which are avoided by funds managed in accordance with Islamic principles.