RHB Unit Trust Launches Malaysia's First Islamic Equity Index Tracking Fund

KUALA LUMPUR, May 11, 2006 : Investors who want to leverage on the expertise of the Dow Jones Indexes and keep their investments Syariah compliant at the same time can now do so via the Dow Jones-RHB Islamic Malaysia index Fund (“DRIMIF”).

The new fund by RHB Unit Trust Management Bhd (“RHBUT”) is the first fund in Malaysia that tracks an Islamic equity index – the Dow Jones-RHB Islamic Malaysia Index. It was officially launched by Minister of Finance II Tan Sri Nor Mohd Yakcop today.

The basic objectives of the fund are broad-based equity exposure, predictable variance around the benchmark, and exposure at the lowest cost; while closely mirroring the performance of the Dow Jones-RHB Islamic Malaysia Index, according to the Chief Executive Officer of RHBUT, Mr Michael Tan.

“It is suitable for aggressive investors who want an investment that complies with Syariah principles and want to benchmark their investment returns against the Index,” he added.

With this fund, investors leverage on the expertise and experience of an international brand name in selecting the best Syariah compliant stocks to provide maximum return potential, and because it closely mirrors the index, fund manager risk is eliminated and investors have predictability in its performance.

“The strategy is to buy and hold qualified securities, trading only when there are participating cash flows, a change to the index, or to reinvest cash from dividend income, tax reclaims or corporate actions. Doing so should yield a sound balance between maintaining a properly indexed portfolio and returns.” Tan said.

The Dow Jones-RHB Islamic Malaysia Index, jointly developed by Dow Jones Indexes and RHB Research Institute Sdn Bhd, was launched on 23 June 2005. It is Malaysia''s first Islamic-compliant index calculated and maintained by a leading global index provider.

In October last year, RHBUT signed a licensing agreement with Dow Jones Indexes and RHB Research Institute that enabled the unit trust manager to invest its funds in stocks listed under the Dow Jones-RHB Islamic Malaysia Index.

This agreement paved the way for the setting up of the Dow Jones-RHB Islamic Malaysia Index Fund.

The index is part of the Dow Jones Islamic Market Index series, which was introduced in 1999, and follows the methodology of the Syariah compliant index family. The index, which is based on internationally acknowledged Islamic finance standards, has been developed specifically to meet the growing demand for Syariah compliant equity indexes – specifically for the Malaysian market.

The Dow Jones-RHB Islamic Malaysia Index is broad-based, covering all stocks in Dow Jones Indexes’ benchmark index for Malaysia that meet Islamic investment criteria. To be included in the index, companies must pass screens for industry type and financial ratios.

Stocks that are excluded from the Islamic index are those of companies that deal in alcohol and tobacco products, pork-related products, financial services, the defence and weaponry sector, and entertainment. Also excluded are companies whose total debt divided by trailing 12-month average market capitalization is 33% or more; those whose cash plus interest-bearing securities divided by trailing 12-month average market capitalization is 33% or more; and those whose accounts receivables divided by trailing 12-month average market capitalization is 33% or more.

The Dow Jones Syariah Supervisory Board, a group of international Syariah scholars, oversees the execution of the Syariah standards used by Dow Jones Indexes. Members of the Dow Jones Syariah Supervisory Board are Shaykh Nizam Yaquby of Bahrain, Sheikh Dr Mohd Daud Baker of Malaysia, Shaykh Justice Muhammad Taqi Usmani of Pakistan, Shaykh Dr Mohamed A. Elgari of Saudi Arabia, Shaykh Abdul Sattar Abu Ghuddah of Syria and Shaykh Yusuf Talal DeLorenzo of the United States.

With the launch of the DRIMIF, RHBUT now manages 17 different funds. Its ISO certification was upgraded from the ISO 9002: 1994 to ISO 9001: 2000 in March 2003. This certification from ISO signifies RHBUT’s commitment to continually improve the quality of service to its customers. The DRIMIF is distributed via RHB Securities and its authorised agents.

For more information, please contact RHB Unit Trust Management Berhad at toll free 1-800-88-3656 or visit our website at www.rhb-unittrust.com.my.

Issued on behalf of RHB Unit Trust Management Bhd by Group Corporate Communications, RHB Capital Bhd. For more information, please call Yeoh Guan Jin at 03-92802536 or 012-3835027 or Akmal Baqi at 03-92802776 or 012-6658704.

"Dow Jones", “RHB” and "Dow Jones-RHB Islamic Malaysia Index(SM)" are service marks of Dow Jones & Company, Inc. and/or Rashid Hussain Berhad and have been licensed for use by RHB Unit Trust Management Berhad ("RHB Unit Trust"). RHB Unit Trust''s Fund based on the Dow Jones-RHB Islamic Malaysia Index(SM), are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in the Fund.