What is the ABF Malaysia Bond Index Fund?
The ABF Malaysia Bond Index Fund (0800EA), ticker ABFMY1, is the first bond ETF in Southeast Asia and Malaysia's oldest ETF still trading today. Launched on 13 July 2005 by AmFunds Management Berhad (AmInvest), it pre-dates the country's first equity ETF by two years.
The fund tracks the Markit iBoxx ABF Malaysia Bond Index — a benchmark of mainly Malaysian Government Securities (MGS) and quasi-government bonds denominated in Ringgit. Owning 0800EA is effectively owning a diversified slice of Malaysia's sovereign bond market, the same securities traded by institutions like EPF, banks and foreign central banks.
With RM 1.79 billion in assets under management, 0800EA is the largest ETF on Bursa Malaysia by AUM — dwarfing even the best-known equity ETFs. Its total expense ratio of 0.10% per annum is the cheapest of any ETF listed in Malaysia.
The Markit iBoxx ABF Malaysia Bond Index
The fund tracks the Markit iBoxx ABF Malaysia Bond Index, maintained by International Index Company (IIC), part of the Markit group (now LSEG). The index is part of the broader Asian Bond Fund (ABF) initiative — a programme by the Executives' Meeting of East Asia and Pacific Central Banks (EMEAP) — 11 central banks including Bank Negara Malaysia — to develop domestic bond markets across Asia.
The index consists of:
→ Malaysian Government Securities (MGS) — conventional ringgit-denominated bonds issued by the Malaysian government. These carry sovereign credit risk (Malaysia is rated A- by S&P, A3 by Moody's).
→ Malaysian Government Investment Issues (MGII) — the Islamic equivalent of MGS, based on Shariah principles. Despite being Islamic instruments, the ETF overall is not classified as Shariah-compliant because it may hold conventional MGS as well.
→ Quasi-government bonds — bonds issued by government-linked entities like Khazanah, Cagamas and other agencies, carrying an implicit sovereign guarantee.
Bond Type Allocation
Maturity Profile
Approximate portfolio composition based on the iBoxx ABF Malaysia Bond Index. The actual breakdown changes as bonds mature and new issuances are added. Verify current holdings in the Annual Report at abfmy1.com.my.
Maturity Breakdown & Duration Risk
A bond ETF's sensitivity to interest rate changes is measured by its duration. The ABF Malaysia Bond Index Fund has a weighted average duration of approximately 7–9 years, which means:
→ If Malaysian interest rates rise by 1%, the fund's NAV is expected to fall by approximately 7–9%.
→ If rates fall by 1%, the NAV rises by approximately 7–9%.
This makes 0800EA a medium-to-long duration bond fund — more rate-sensitive than a short-duration money market fund, but offering higher yield potential.
Indicative Maturity Breakdown
The Remarkable 0.10% Expense Ratio
| Component | Rate (p.a.) | Notes |
|---|---|---|
| Annual Management Fee | 0.10% | AmFunds Management Berhad |
| Annual Trustee Fee | Included | HSBC (Malaysia) Trustee Berhad |
| Index Licence Fee | Included | Markit iBoxx licence |
| Total Expense Ratio | ~0.10% | All-in ongoing annual cost |
| Brokerage | 0.08%–0.10% | Per trade. Varies by broker. |
For context: A typical Malaysian bond unit trust charges 1.0%–1.5% per annum in management fees. At 0.10%, 0800EA keeps ~0.90–1.40% more return in investors' hands each year — compounding significantly over a long holding period.
Who Should Consider 0800EA?
The ABF Malaysia Bond Index Fund suits investors who want to:
Preserve capital and earn income — bonds are less volatile than equities. Government bonds are among the safest assets in any market.
Diversify away from equity risk — bonds and equities tend to be negatively or weakly correlated. Adding 0800EA to an equity portfolio can reduce overall portfolio volatility.
Earn a yield above fixed deposits — MGS yields have consistently been 0.5%–1.5% above 12-month fixed deposit rates, with the ETF providing daily liquidity vs the lock-up of an FD.
Access bonds without a RM 5 million minimum — institutional-grade government bonds become accessible with as little as RM 100–200.
How to Buy 0800EA
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Open a brokerage accountAny Bursa-licensed broker. Options: Rakuten Trade, moomoo MY, Maybank IB, CGS International, AmBank (the fund's own market maker), RHB IB.
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Search for 0800EA or ABFMY1Use stock code 0800EA or short name ABFMY1 in your trading platform. Bloomberg ticker is MBIF MK.
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Check the NAV vs market priceBecause 0800EA trades at small premiums or discounts to NAV, use a limit order near the last-traded price rather than a market order. The premium/discount is typically small (<0.2%).
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Place order (min 100 units)Board lot size is 100 units. At ~RM 1.10–1.15/unit, minimum investment is roughly RM 110–115 plus brokerage.
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Receive semi-annual income distributionsThe fund pays out bond coupon income twice a year. Distribution amounts vary based on coupons collected. Check Bursa Malaysia announcements for declaration dates.
How Does It Compare?
| Product | Asset Type | Typical Yield | Fee | Liquidity |
|---|---|---|---|---|
| 0800EA ABF Malaysia Bond Index Fund |
Bond ETF | ~3.8–4.2% | 0.10% | Intraday (Bursa) |
| Bond Unit Trust (typical) e.g. Public Bond Fund |
Bond Fund | ~3.5–4.0% | ~1.0–1.5% | Daily (T+1 to T+3) |
| 12-Month Fixed Deposit Major Malaysian banks |
Deposit | ~2.9–3.3% | Nil | Locked (penalty to break) |
| 0824EA — EQ8 Malaysia Dividend High-dividend equity ETF |
Equity ETF | ~4.0–6.0% (div + capital) | 0.505% | Intraday (Bursa) |
The key advantages of 0800EA over bond unit trusts are the dramatically lower fee and intraday liquidity. The trade-off vs a fixed deposit is that the NAV can fluctuate with interest rate movements, whereas an FD principal is protected (up to PIDM limits).