You may have seen or heard Amanah Hartanah Bumiputera (AHB) advertisements on TV, radio, newspaper and other channels recently. Are you interested to invest in AHB? How about its risks and returns? Is it better than your existing investment? Read on to know more about AHB so you can make an informed investment decision.
Essentially, AHB is a Shariah-compliant unit trust fund that invests primarily in the beneficial ownership of commercial properties in prime locations in Malaysia. The scheme is worth RM1.5 billion, with a minimum initial investment of RM500 at a fixed price of RM1 per unit, and a maximum of RM400,000. The Fund seeks to provide Unit Holders with a regular and consistent income stream whilst preserving the Unit Holders' investment capital.
If you are a member of the Bumiputera community and eligible to invest in AHB, there are some important questions you should first ask. This article will help you to:
- identify the key questions you need to ask before investing in AHB; and
- make an informed decision for investing in AHB after asking the questions.
Question #1: What is the objective of AHB?
The AHB seeks to provide Bumiputera investors with regular and consistent income without sacrificing their capital.
Question #2: How are the assets in AHB allocated?
AHB allocates its assets in beneficial ownership of real estate in Malaysia which are Shariah Compliant, specifically offices, shopping, commercial, logistics and industrial complexes. It also invests in cash and Shariah-compliant money market instruments to fulfill its liquidity requirements.
Question #3: What is the minimum initial investment to start investing in AHB?
If you plan to invest in AHB using cash, you will need to purchase no less than 500 units. If you wish to use your Employees Provident Fund (EPF) money, you are allowed to do so, but you must purchase no less than 1,000 units. The maximum combined limit for you to purchase is 400,000 units.
Question #4: What is the fund’s distribution policy?
If AHB earns an income from its beneficial ownership of real estate, the Manager may decide to give distributions on a twice-yearly basis or more. However, this is subject to the Trustee’s agreement. To enjoy the distribution, AHB investors must provide their bank account numbers when applying to invest.
Question #5: Are there any sales or redemption charges?
Currently, the Manager does not impose any charge whenever you buy or sell AHB units.
Question #6: How frequently can I sell (redeem) my AHB units?
You may sell your AHB units not more than ONCE in a calendar month. For example, if January has 31 days you may only sell your AHB units ONCE during that 31-day duration. You can only sell further AHB units when the NEXT calendar month starts i.e. February.
Question #7: What is the Shariah status of AHB?
AHB is a Shariah-compliant investment scheme.
Question #8: Who is eligible to invest in AHB?
AHB is only open to Malaysian Bumiputeras aged 18 years old and above. Those aged below 18 (minimum 3 months old) are eligible but must register with a Bumiputera guardian/parent above the age of 18.
Question #9: What is the value of AHB’s assets?
Under the management of Pelaburan Hartanah Berhad, AHB’s total value of completed assets is RM1.8 billion as of April 2013. Pelaburan Hartanah Berhad's ownership of completed properties includes Tower 3, Avenue 7 in Bangsar South City, Menara Bumiputra-Commerce at Jalan Raja Laut, CP Tower in Petaling Jaya, Wisma Consplant in Subang Jaya, Peremba Square in Shah Alam and Tesco Setia Alam in Shah Alam.
Question #10: How frequent is the income distribution?
Income distribution (if any) will be made on a semi-annual basis.
Question #11: Can the distribution be reinvested?
Generally, income distribution will be paid in cash (i.e. directly credited into your bank account). Unit holders may re-invest subject to the availability of units.
Question #12: Is there a maturity period for the Fund?
There is no maturity period for the Fund. The Fund’s tenure is indefinite; subject to the terms of the Deed.
Brought to you by Securities Industry Development Corporation (SIDC), the training and education arm of the Securities Commission Malaysia, as part of its ongoing efforts to create well-informed and savvy investors in the capital market. The information provided in this article is only for educational purposes and should not be used as a substitute for legal or other professional advice. For more information, log on to www.min.com.my, call 03-62048889 or visit our Facebook page at www.facebook.com/PelaburMalaysia