Investment to Exchange Trade Funds

Indirect investment into Government securities may also be conducted by exchange-traded funds (ETF) on Bursa Malaysia, the national stock exchange. Currently only one ETF is listed and traded on the exchange, the Asian Bond Fund (ABF) Malaysia Bond Index Fund or ABF Malaysia in short. The ABF Malaysia ETF is in turn invested into a portfolio of mostly government securities and certain quasi-government debt securities. The ETF may be bought and sold by both residents and non-residents alike on Bursa Malaysia through a licensed remisier or stockbroker for as little as 100 units of denomination. A separate trading account with a stockbroking firm and a custody account on Bursa Malaysia's Central Depository System (CDS) must be set-up for this purpose. The ABF Malaysia Fund pays regular income distributions drawn from coupon income of the underlying portfolio.