PETALING JAYA: Eq8 Capital Sdn Bhd, a member of Kenanga Investors Group, announced today the listing of the world’s first Waqf-featured exchange-traded fund (ETF), the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF (Waqf ETF or EQ8WAQF), on the Main Market of Bursa Malaysia Securities.
The Waqf ETF aims to distribute income annually with half of the income distribution to be allocated as Waqf assets with the remaining half payable to unitholders.
The launch is the result of a strategic collaboration between Eq8 and Yayasan Waqaf Malaysia (YWM) which was announced in June with YWM as the appointed Waqf administrator of the Waqf assets generated by the Waqf ETF.
“We are proud to announce the launch of the world’s first Waqf-featured ETF together with YWM, marking a significant milestone after months of dedicated effort. The Waqf ETF underscores Kenanga Investors unwavering commitment to advance impact investing, especially in today’s climate. Waqf is now widely recognised as a critical pillar of support for Malaysia’s socio-economic development and contributes to the United Nation’s Sustainable Development Goals. We perceive the launch to be in alignment with the government’s call for increased collaborations between religious bodies, the public and the private sectors in order to maximise potential for Waqf assets to fund projects such as education, healthcare, economic empowerment and environment,” said Kenanga Investors executive director and CEO Datuk Wira Ismitz Matthew De Alwis.
He added that this reflects the spirit of Waqf in creating long-term, sustainable benefits for communities, fostering social equity, and addressing pressing societal needs.
The Waqf ETF represents a continuous commitment by Kenanga Investors and its group of companies to participate in the Securities Commission Malaysia’s Islamic Fund and Wealth Management Blueprint, Waqf-Featured Fund Framework alongside the enhancements to Bursa Malaysia’s Main Market Listing Requirements. The Waqf ETF is the third Waqf-featured product by the group that has been issued since the launch of the Kenanga Waqf Al-Ihsan Fund in 2021.
Eq8 executive director Umar Alhadad said EQ8WAQF exemplifies how an Islamic capital market product can be innovatively developed to integrate investment returns while fostering inclusivity, sustainability, and shared prosperity.
“EQ8WAQF features an index lead scheme to generate dividends from the thoughtfully designed index which combines an income-focused strategy with a momentum-based approach. This innovative strategy aims to deliver higher dividend yields while providing investors with potential capital growth, positioning it as an advantageous alternative to traditional dividend-focused funds,” he said.
YWM CEO Dr Ridzwan Bakar said they are glad to continue their partnership with Kenanga Investors with the introduction of the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF.
“This Waqf ETF serves as an additional instrument in accommodating Yayasan Waqaf Malaysia’s efforts to grow Waqf assets and the wellbeing of the community with the distribution of the Waqf assets for the EQWAQF to be channelled towards economic empowerment, education, healthcare, and environmental causes. With the formation of innovative products like this, investors of all faiths may now take part in contributing towards the betterment of society. We look forward to working closely with more stakeholders across Malaysia to drive the growth and development of Waqf,” he added.
Bursa Malaysia CEO Datuk Muhamad Umar Swift, said the exchange has observed a growing trend of investors opting for syariah or ethical investing, given its close alignment with ESG investing.
He added that the introduction of EQ8WAQF is timely and is expected to be well-received by investors, particularly those seeking financial returns while making a positive impact on society.
The Waqf ETF is the fifth addition to Eq8’s ETF product suite making it the largest ETF issuer in Malaysia. EQ8WAQF is suitable for investors seeking medium to long-term investment opportunities in liquid financial instruments with index-tracking features that focus on high-yield, dividend-paying syariah-compliant equities.
