Bank Islam Brunei Darussalam (BIBD) through its subsidiary BIBD Securities Sdn Bhd (BIBDS) launched two new investment products suitable for potential investors seeking a stable and consistent income as well as long-term returns, which are Syariah-compliant products from Franklin Templeton Investments.
The two mutual funds, an investment allowing investors with similar investment goals and objectives to pool their money in a diversified portfolio, are the Franklin Global Sukuk Fund and Templeton Global Equity Fund.
Franklin Templeton Investments is a global leader in asset management with over seven decades of experience.
This was shared at a launch introduction and campaign announcement at BIBD’s headquarters in the capital yesterday.
BIBD Securities Managing Director Haji Muhammad Yazid bin Dato Paduka Haji Mahadi and BIBD Securities Business Development Manager Lim Yuen Yuen briefed the media.
“We are happy to introduce two basic products that are easy to understand for investors who may have limited knowledge or are new to investing. The mutual funds are managed by industry professionals and do not require investors to be heavily involved in the management of the fund unlike other investment products,” said Haji Muhammad Yazid.
BIBDS wanted to bring into the market simple products to educate and familiarise customers with investment products, which serves to support Autoriti Monetari Brunei Darussalam’s (AMBD) national goal of improving financial literacy in Brunei Darussalam and eventually create a society able to participate in the local capital markets, he said.
Haji Muhammad Yazid said in conjunction with the launch, BIBDS is conducting a campaign from September 15 to December 30 to provide and enable access to clients in a wide range of investment solutions.
Client participation is welcome while BIBDS recommends and encourages youth to start early as it will benefit their future.
“We are here to provide that solution and BIBDS, being the sole provider of Syariah-compliant products, will provide products enabling investors to invest as low as BND100 on a monthly basis.”
BIBDS started as a platform to allow and enable clients to trade BIBD shares until today and as part of that journey, what BIBDS wants to bring into the market is products or investment solutions that have been in the market, have a track record, have the credibility and mainly to provide confidence and the source of comfort among investors.
Regarding choosing Franklin Templeton, Haji Muhammad Yazid said, “Even in the Syariah segment alone, the market is relatively limited. So that’s how we scan what is available globally in which Franklin Templeton is one of the most compelling candidates, given their track record and credibility in the world.”
As for the mutual fund, a professional fund manager will manage and trade the pooled money in securities, such as stocks, Sukuk and money market instruments to match the fund’s investment objectives.
The Franklin Global Sukuk Fund invests in a fund offering monthly dividend pay-out and access to a diversified portfolio of Sukuk securities issued by government, government-related and corporate entities in developed and developing countries.
The Templeton Global Equity Fund, on the other hand is an investment fund that offers long-term capital growth with access to a fully diversified Syariah-compliant global investment across various countries and sectors.