PETALING JAYA (Oct 16): Malaysians can now invest in local small and medium enterprises (SMEs) through a wholesale fund with the launch of the Tradeview Funding Societies Income Fund (TFSIF).
The fund is a result of the collaboration between boutique asset management firm Tradeview Capital and peer-to-peer (P2P) financing platform operator Funding Societies Malaysia. Both are licensed by the Securities Commission Malaysia.
The TFSIF targets sophisticated investors with a medium- to long-term investment horizon. With a minimum investment amount of RM10,000, it aims to generate an absolute return of 6% per annum to the investors, which will be distributed monthly.
The returns are generated from investing in short-term investment notes issued by local businesses. These are typically smaller sized companies underserved by the banks, but are creditworthy with good repayment histories.
Short-term investment notes are essentially debt papers issued by SMEs to raise funds from licensed P2P financing platforms, such as Funding Societies.
The fund imposes a sales charge of up to 2% of the net investment amount, while annual management fee is up to 1.5% per annum. The initial offer period shall be for a period of not more than 45 calendar days from the launch of the fund.
To further safeguard investors, the fund incorporates a Credit Enhancement Reserve — a reserve pool with funds of up to 10% of its net investment deposits — to support TFSIF’s benchmark return of 6% per annum and absorb initial credit losses.
In addition, parts of the fund’s underlying investment notes are backed by registrable collateral or third party guarantees from CGC Digital Malaysia, a wholly owned subsidiary of the Credit Guarantee Corporation.
According to its press release, the fund is structured as an open-ended wholesale fixed income vehicle, offering investors monthly income distributions and liquidity opportunities. It combines the complementary strengths of both partners — Tradeview Capital’s disciplined fund management approach and Funding Societies’ SME origination and risk analytics platform — to create a professionally managed, diversified portfolio that prioritises investment stability.
The fund supports real economic growth as capital is channelled directly into brick-and-mortar local SMEs to support their businesses.
“We have always believed that SMEs are the greatest economic asset of the country. This initiative seeks to strengthen the role of SMEs as the pillar of Malaysia’s economy, accounting for 39.5% of GDP and employing 8.1 million people, according to the Department of Statistics Malaysia," said Tradeview Capital chief investment officer Nixon Wong.
"By facilitating access to growth capital, the fund aims to enhance SME resilience, while offering investors stable and sustainable returns,” he added.
Funding Societies country head Chai Kien Poon said, “Through TFSIF, we’re connecting institutional and sophisticated investors directly to the SMEs driving Malaysia’s economy by offering the opportunity to earn predictable income while contributing to national growth.
“Both Funding Societies and Tradeview Capital started as SMEs ourselves. We understand their challenges first-hand and share a deep commitment to empowering the growth of Malaysian businesses.”
As at Oct 16, Tradeview Capital has crossed RM100 million in assets under management and achieved profitability within three years since it was first launched. Its flagship product, the Tradeview Sustainable Fund, has continued to deliver an average return of 11.2% per annum since its launch in 2022.
Meanwhile, Funding Societies brings a proven regional track record, having disbursed over RM20 billion to more than 100,000 SMEs through five million financing notes across Malaysia, Singapore, Indonesia, Thailand and Vietnam.