AmanahRaya Writes Off Zetrix Al Sukuk Across Four Funds

Quick Answer: AmanahRaya Investment Management (ARIM) has written off the entire value of the Zetrix Al sukuk held by four of its funds after Zetrix Al missed a RM25.68 million payment on November 6. The adjustment cut NAV per unit to between 66.11 sen and 94.08 sen, effective November 10. Unitholders across all four funds are affected, and dealings remain suspended until November 23.

What Happened to the Zetrix Al Sukuk in AmanahRaya’s Funds?

AmanahRaya Investment Management writes off Zetrix Al sukuk across four funds

AmanahRaya Investment Management Sdn Bhd (ARIM) has written off the entire value of sukuk issued by Zetrix Al Bhd (KL:ZETRIX) held by four of its funds. A memo to investors, sighted by The Edge, said the change is reflected in NAV per unit effective November 10.

The trigger was a November 6 default on a RM25.68 million payment under a sukuk wakalah issued by the digital services firm. The trustees of the affected funds approved the valuation change.

MARC Ratings has downgraded the RM2 billion programme to default status and ended its coverage of Zetrix. Bond Pricing Agency Malaysia stopped providing prices for the sukuk on November 10.

Why Did ARIM Value the Zetrix Al Sukuk at Nil?

ARIM said it could not establish a “reasonable basis for recognising any recoverable amount” without a confirmed settlement date. Zetrix also has no external auditor to confirm its financial position.

The missed payment relates to one tranche, but a dissolution event from a payment default lets sukukholders demand all amounts due under the entire programme. “Recovery on every series held by the funds therefore depends on the same uncertain outcome,” ARIM said.

How Far Did NAV Per Unit Fall Across the Four AmanahRaya Funds?

On November 10, NAV per unit fell to the following levels:

AmanahRaya Unit Trust Fund (ARUTF): 66.86 sen
AmanahRaya Syariah Trust Fund (ARSTF): 66.11 sen
AmanahRaya Syariah Income Fund (ARSIF): 72.63 sen
AmanahRaya Mixed Asset Syariah Conservative Income Fund (ARMASCIF): 94.08 sen

ARMASCIF holds the highest NAV at 94.08 sen. ARSTF sits lowest at 66.11 sen.

Can Unitholders Still Recover Money From the Zetrix Al Sukuk?

ARIM stressed that the nil valuation does not mean the funds have given up their rights to recover principal and profit due under the sukuk. “ARIM will continue to pursue the available avenues for recovery,” the fund manager said.

Any amount recovered will be added back to the funds’ NAV when received, for unitholders at the time. The payment remained outstanding as of November 10, with no settlement in sight.

When Will Dealings in the Four AmanahRaya Funds Resume?

Dealings in all four funds remain suspended until November 23. ARIM said it will provide further notice on the redemption arrangement and when dealings will resume.

What Is Driving ZETRIX’s Fall of Over 90% This Year?

The ZETRIX stock has lost over 90% of its value year-to-date. Zetrix is now under scrutiny from investors, bondholders, authorities, regulators and the government.

Zetrix and its unit MYEG Sdn Bhd were suspended as Road Transport Department (JPJ) collection agents after failing to remit RM314 million collected on behalf of the agency. The Transport Ministry said it plans to sue to recover the monies.

MYEG has also received an additional RM353.13 million tax bill from the Inland Revenue Board over transfer pricing for years of assessment 2021 to 2023. For Bursa watchers, the ZETRIX counter and these JPJ and tax matters are worth monitoring.

📊 On AI Stock Terminal: ZETRIX quarterly results · ZETRIX announcements

Disclaimer: This article is for general information only and does not constitute investment advice or a recommendation to buy, sell or hold any security. Figures are taken from a memo reported by The Edge and may change. Always do your own research before making any investment decision.

Key Takeaways

ARIM wrote off the entire value of the Zetrix Al sukuk held by ARUTF, ARSTF, ARSIF and ARMASCIF, effective November 10.
NAV per unit now ranges from 66.11 sen to 94.08 sen across the four funds.
ARIM says recovery rights remain, and any recovered amount will be added back to NAV when received.
Dealings in all four funds are suspended until November 23, with further notice to follow.
ZETRIX has lost over 90% year-to-date, with the RM314 million JPJ remittance and RM353.13 million tax bill for MYEG under scrutiny.

Frequently Asked Questions

Why did AmanahRaya write off the Zetrix Al sukuk?

ARIM wrote off the entire value because it could not establish a reasonable basis for recognising any recoverable amount. Zetrix had missed a RM25.68 million payment on November 6, had no confirmed settlement date, and has no external auditor to confirm its financial position.

When will AmanahRaya Unit Trust Fund dealings resume?

Dealings in the AmanahRaya Unit Trust Fund are suspended until November 23. ARIM said it will issue further notice on the redemption arrangement and the date dealings resume.

What is the NAV per unit of AmanahRaya Unit Trust Fund after the write-off?

The NAV per unit of the AmanahRaya Unit Trust Fund fell to 66.86 sen on November 10. The figure reflects the nil valuation of the Zetrix Al sukuk.

Can unitholders still get money back from the Zetrix Al sukuk?

ARIM says the funds have not given up their rights to recover principal and profit due under the sukuk. Any amount recovered will be added to the funds’ NAV when received, for unitholders at the time.

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