ARIM temporarily suspends transactions across three funds
The fund manager cited liquidity pressures and investment credit risks, with subscriptions, redemptions and switching all affected.
Liquidity pressures have prompted AmanahRaya Investment Management Sdn Bhd (ARIM) to impose an immediate, temporary halt on transactions across three funds. The Amanah Raya Bhd subsidiary attributed the constraints to growing redemption demand and increased credit risks associated with certain investments.
ARIM identified the funds as AmanahRaya Syariah Trust Fund (ARSTF), AmanahRaya Syariah Income Fund (ARSIF) and AmanahRaya Unit Trust Fund (ARUTF). The restrictions cover subscriptions and redemptions, as well as transfers through fund switching.
According to ARIM, the pause gives it room to examine investment values and liquidity before choosing its next steps. It said the measure seeks to safeguard unitholders, ensure fair treatment and avoid having to dispose of assets at deep discounts. ARIM also cautioned against interpreting the suspension alone as evidence that an issuer had defaulted or an investment loss had been realised.
Discussions are under way with the relevant issuer and trustees, whose identities ARIM did not provide. The manager said it would consult fund trustees when reviewing the halt regularly, and use authorised channels to announce whether dealings would resume or the suspension would continue.
The Edge Malaysia had earlier identified the funds as major holders of Zetrix AI Bhd bonds following a sharp decline in the company's shares. ARIM acknowledged that the funds held those notes, while putting their combined holdings at less than 30% of the company's bonds.
