Kuala Lumpur-headquartered Maybank Asset Management is expanding its fund offering in Singapore with the application of two Asia-focused products.
The Maybank Asian Small Cap Fund and the Maybank Asian Growth and Income-I Fund are now awaiting regulatory approval from the Monetary Authority of Singapore (MAS), according to the regulator’s records.
Both of the funds will be domiciled in Singapore, according to their prospectus.
Managed by Ajay Sharma and Kedar Wagle, the Asian Small Cap Fund will focus on Asia markets, but will have the flexibility to invest up to 30% of its assets outside of the region, the prospectus reads. It may also invest up to 20% of its assets in other mutual funds, such as the Maybank Enhanced Income Fund and gold ETFs, when the managers find the equity markets unfavourable.
Meanwhile, the Asian Growth and Income-I Fund, which is managed by Robin Yeoh Yern Jin and Rachana Mehta, is a mixed-asset product that invests in equities that comply with Shariah principles and global Islamic securities known as sukuk, including floating rate, fixed-rate, index-linked, subordinated and convertible securities.
While the product is an income fund, the prospectus noted that distributions are not guaranteed.
Around 30-70% of its assets will be invested in Asia (ex-Japan) equities, while 30-70% will be invested in global sukuk, according to the prospectus.
Shariah-compliant investments are in line with basic Islamic principles. For example, no stocks may derive income from gambling, alcohol, tobacco, pork products, adult entertainment or military equipment. The principles also restrict the use of some mainstream financial instruments such as debt-financing, charging interest or the use of derivatives.
Maybank AM already offers another mixed-asset product in Singapore, the Maybank Asian Growth and Income Fund, which was launched in October last year, according to data from FE Fundinfo. However, it is a balanced fund in which 50% of its assets is invested in the Maybank Asian Equity Fund, and the remainder into the Maybank Asian Income Fund, according to the prospectus. The product also does not have a shariah or sukuk mandate.
When both funds are approved, Maybank AM will be offering eight products to retail investors in Singapore, including the Maybank All-Weather Quantitative Fund, which was filed with the MAS last year.
Elsewhere, Maybank AM has a presence in Indonesia (PT Maybank Asset Management), where it manages 31 mutual funds with IDR 5.79trn ($402m) in assets as of the end of September, according to the firm’s website.
In total, the Maybank AM Group’s AUM was MYR 30.2bn ($7.27bn) as of the end of August.
