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KAF Investment Aims To Generate RM100 Million For First Feeder Fund

Last update: 01/08/2016

KUALA LUMPUR, Aug 1 (Bernama) -- KAF Investment Funds Bhd (KAF) aims to generate RM100 million from its first feeder fund, KAF Australian Islamic Property Fund (KAIPF), within the first six months of its launch.


A collaboration between KAF and Australian Islamic investment firm Crescent Wealth (Crescent), KAIPF is expected to draw an annual return of between 9.0 and 10 per cent over the maturity period of three and five years.


Crescent Wealth Malaysia Country Head Mas Johan Harris said the fund was aimed at giving Malaysian non-institutional investors direct access to Australian commercial property.


"It will be invested via Crescent Diversified Property Fund (CDPF), Australia's Islamic property fund," he told reporters after the KAIPF launch here today.


Mas Johan said given the continued demand for commercial property in Australia, coupled with the current global low interest rate environment, as well as higher average rental yield of seven per cent annually, the returns were attainable.


"Since its launch in February 2013, CDPF has delivered an average return of 17.9 per cent per annum and total returns since inception of 70.34 per cent as at June 30, 2016," he said.


Mas Johan is also confident that KAIPF would register capital appreciation of between two and three percent, annually.


Meanwhile, KAF acting Chief Executive Officer Mohd Irhzan Mohd Nor said the fund was offered in two currencies -- ringgit and Australian dollar -- each at RM1 and A$1 per unit, with minimum initial investment of RM10,000 and A$3,000, respectively.


-- BERNAMA