The prime minister of Malaysia, Najib Razak, officiated the launch of Maybank Islamic Asset Management at the World Islamic Economic Forum in London on Tuesday.
Over the next one-to-two years, the asset manager plans to offer Islamic funds in four “key markets” namely Malaysia, Singapore, Thailand and Indonesia where it feels it has a “strong on-the-ground presence and is ready to set up Islamic funds for local distribution,” the company told International Adviser.
“Although we are simultaneously looking at a global distribution by tapping into Maybank’s global international network in 20 countries worldwide and via possible cross border distribution agreements with business partners in those jurisdictions, this will only realise in the medium-to-long term plan of two-to-five years.”
According to the asset manager, Malaysia’s position as a sukuk leader has boosted the industry globally and turned the region into an important avenue for international Islamic fund raising.
“Maybank has and will continue to play a pivotal role in elevating the significance of Islamic finance globally. The establishment of Maybank Islamic AM as a dedicated Islamic asset management unit with tremendous business potential completes Maybank’s suite of Islamic financial offerings,” said Nor’ Azamin Salleh chief executive of Maybank Asset Management Group, who oversees and heads the regional asset management businesses of Maybank.
Meanwhile, Maybank Islamic AM chief executive Azmeen Adnan said: “Maybank Islamic AM aims to become a key player and catalyst in the development of the global Islamic asset Management landscape.”
Currently, Maybank AM offers shariah real estate backed fund – Amanah Hartanah Bumiputra (AHB), direct equity portfolio mandates for Hajj funds, and direct mandates investing in Asean countries.
AHB, the Shariah product launched in 2010, would now be transferred to Maybank Islamic AM, which will be henceforth dedicated for all Islamic funds, while Maybank AM will manage other conventional products, a company spokesperson said.
According to Adnan, Indonesia, where the asset manager recently started its operations, “presents an enormous potential given it is the largest Muslim country and, home to 12.7% of the world’s Muslims”.
“With the internationalization of the Shariah screening methodology, the competitiveness of the Islamic fund management industry is further enhanced, and we do expect a spur of Islamic fund inflows in the region,” he added.
Buoyed by the growing opportunities in the Malaysian Islamic space, Threadneedle Investments also recently announced its foray in the region with plans to offer shariah-compliant products.
The Maybank Group owned Maybank AM manages assets worth MYR10.8bn, as of September-end.
The Maybank Group is South East Asia’s fourth largest bank by assets with an international network of over 2,200 offices in 20 countries with over 47,000 employees serving more than 22 million customers worldwide.
Maybank AM aspires to become a leader in ASEAN by 2017 through its strong local presence and focused Asian expertise.
