AmanahRaya writes off Zetrix sukuk holdings in four funds
Dealings in the affected funds remain suspended until November 23, while the fund manager says recovery efforts will continue.
AmanahRaya Investment Management Sdn Bhd (ARIM) has valued at nil the Zetrix Al Bhd sukuk held by four funds following a payment default. An investor memo seen by The Edge said the write-off was incorporated into the funds’ per-unit net asset values effective Nov 10, with approval from their trustees.
Zetrix failed to pay RM25.68 million on November 6 under its sukuk wakalah. MARC Ratings subsequently assigned default status to the RM2 billion programme and discontinued coverage of Zetrix. The payment was still outstanding on November 10, when Bond Pricing Agency Malaysia stopped pricing the sukuk.
The affected funds and their per-unit net asset values on 10 November were:
- AmanahRaya Unit Trust Fund (ARUTF): 66.86 sen.
- AmanahRaya Syariah Trust Fund (ARSTF): 66.11 sen.
- AmanahRaya Mixed Asset Syariah Conservative Income Fund (ARMASCIF): 94.08 sen.
- AmanahRaya Syariah Income Fund (ARSIF): 72.63 sen.
ARIM said it could not establish a reasonable recoverable value because no settlement date had been confirmed and Zetrix’s financial position remained uncertain. It also noted that Zetrix lacked an external auditor to verify its financial position.
Although the default involved one tranche, ARIM said the resulting dissolution event allows holders to seek immediate payment of everything owed across the programme. Recovery prospects were therefore subject to the same uncertainty for each series held by the funds.
The write-off does not surrender the funds’ claims to principal and profit, ARIM said. It will pursue recovery, but cautioned that success is not assured. Any proceeds received would be restored to the funds’ net asset values for unitholders at that time. ARIM said further notice would set out redemption arrangements and the resumption of dealings.
