Malaysia’s first bond and equity ETFs declare income distribution

KUALA LUMPUR: Malaysia’s first exchange-traded funds (ETFs), ABF Bond Index Fund () and FTSE Bursa Malaysia KLCI etf (FBM KLCI etf), have declared an income distribution of 4.65 sen and 2.80 sen per unit, respectively, for the financial year ended Dec 31, 2018.

In a statement yesterday, AmInvest said ABF Malaysia’s income distribution represented an income distribution yield of 4.06 per cent, while for the FBM KLCI etf it was an income distribution yield of around 1.91 per cent.

“ABF Malaysia is the only bond ETF in the market and its portfolio comprises mainly Malaysian government bonds, while the FBM KLCI etf is designed to follow the performance of the benchmark index, FTSE Bursa Malaysia KLCI,” it said.

AmInvest chief executive officer Goh Wee Peng said the latest enhancements to the ETF framework by Bursa Malaysia, such as the introduction of qualifying criteria for investors trading in leveraged and inverse ETFs, and an expansion of the permitted short selling framework to allow the short-selling of new types of ETFs from the current equity-based ETFs, would help drive growth and industry innovation and create a more vibrant ETF ecosystem. – Bernama