Maybank Asset Management Singapore (MAMS) has launched Singapore’s first Shariah-compliant balanced fund.
The Maybank Asian Growth and Income – Islamic Fund offers investors a mix of securities across Shariah-compliant Asian stocks, global sukuks as well as gold ETFs. The fund targets to achieve a potential monthly dividend payout of 5% per annum and an annual return of 6% to 7%.
MAMS CEO Goh Keat Jin says the launch of the fund is an extension of Maybank’s efforts to expand its suite of wealth management solutions to investors. This includes serving the wealth accumulation objective of the Islamic communities in Singapore, Malaysia and Indonesia.
“Our fund adheres to Shariah principles and is suitable for investors seeking ‘halal’ returns or looking to diversify their portfolios in new markets. It is catered to socially responsible investors who wish to invest in Shariah-compliant activities,” he says in a press release announcing the fund on Oct 14.
MAMS states it is relatively more positive on the economic outlook of Asia-Pacific region as Western developed nations have lower growth potential. To that end, investors in the fund will be able to participate in the potential economic upside of Asia-Pacific, excluding Japan.
See: Maybank Singapore launches green loans for home mortgage and home renovation
According to MAMS, the fund is backed by its proprietary quantitative investing technology, combined with the experience of its fund managers.
While Singapore has seen growth in conventional wealth management solutions, it has lagged in its offerings for Islamic investment solutions. Citing a survey conducted by Financial Alliance’s Islamic Wealth Advisory (FAiWA), MAMS highlights that over 80% of Muslim investors would prefer Shariah investment solutions if they are available.
Besides benefitting the Islamic community in Singapore, ethically focused Islamic investments will also serve the wealth management needs of investors who want to advocate socially responsible investing or champion Environmental, Social and Governance (ESG) investing.
MAMS also noted that contrary to the belief that Shariah investments offer limited potential returns as it is restrictive in scope, data indicates otherwise. The Dow Jones Islamic Market World Index, which measures the performance of Shariah-compliant stocks, outperformed the MSCI All Country World Index by 56% over a 10-year period and 31% over a 5-year period.
The Maybank Asian Growth and Income – Islamic Fund is distributed through Maybank Singapore and will be made available to other platforms. The minimum investment sum is $1,000, and sales charge and fund manager fees apply.
Photo of Goh Keat Jin: Maybank Asset Management Singapore