Kuala Lumpur: There is still need for improvement especially to create infrastructure and regulatory framework, for Shariah-compliant investments to be stronger, says fund manager, HwangDBS Investment Management Bhd (HwangDBS IM).
"We have to deal with the challenges of a developing industry where the regulatory framework and collaboration at the country level are still in a relatively preliminary stage," its head of international equities Peter Chiang Ngee Onn told a media briefing Wednesday.
HwangDBS IM together with its sister company, Asian Islamic Investment Management Sdn Bhd (Aiiman), and industry authority, Amanie Business Solutions Sdn Bhd, shared the highlights, opportunities and challenges of Shariah-investment.
Chiang said Shariah-compliant investments are currently merely a sliver of the global financial system, hence, there is an enormous untapped market locally and abroad.
"In order to capture these opportunities, we need to attract and develop talents, have indepth understanding of our target audience and ensure we are able to innovate and customise our offerings to meet clients' needs," he said.
Chiang said Shariah-compliant investments are gaining popularity with investors of diverse race and culture as an alternative to post-financial crisis due to its relative transparency, stability and resilience.
"The stable and consistent double-digit growth rates of the total assets under the Shariah category is strong proof that these are vehicles that are feasible options to its more popular conventional counterpart," he said.
Chiang said it was interesting to note that 88 per cent of the total listed securities on Bursa Malaysia are Shariah-compliant, making up 64 per cent of the total market capitalisation.
"Locally, on an average basis, one in three funds launched is Shariah-compliant and many of the equity-type have been charting double-digit growth rates.
"Furthermore, the average investor profile ratio in Shariah-compliant investments is about 60:40, where 60 per cent of the investors are non-Muslims," he said.
On Aiiman business, Chiang said the company will focus on the HwangDBS Aiiman A20 China Access Fund, an Islamic fund that offers investors access into China's A-share market.
"We are working with several distributors in Dubai and Bahrain to distribute the fund there," he added.
Aiiman, an innovative Shariah investment solutions provider focused on Asian equities and global sukuk, is a joint venture between Singapore's DBS Asset Management Ltd and Hwang-DBS (Malaysia) Bhd.
Launched on March 26, HwangDBS Aiiman A20 China Access Fund was aimed to provide exposure to the 20 largest Shariah-compliant China A-share companies that were listed in Shanghai or Shenzhen stock exchanges.
To date, Aiiman manages a total asset worth RM1.2 billion, comprising unit trust funds and discretionary mandates. They currently manage five funds, of which, four a retail-oriented and one institutional. - Bernama [More]
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