![]() The Indonesian company, which oversees 35 trillion rupiah, aims to attract up to $30 million from investors in the first year for the equities vehicle, which uses the Dow Jones Islamic Market World Index as a benchmark, he said. Mandiri Manajemen’s plan for more Shariah investment vehicles comes after the company’s global Islamic stock fund drew $10 million from institutional investors when it was set up on Aug. Islamic banking assets in Malaysia totaled 685.4 billion ringgit as of end-December while those in Indonesia reached 211.4 trillion rupiah ($16 billion) in May, official data show. Issuance of ringgit-denominated corporate Islamic bonds increased 56 percent in 2016 to 42.1 billion ringgit. Worldwide sales of debt complying with the religion’s tenets climbed 18 percent to $27.2 billion for far this year, after reaching $35.6 billion for the whole of 2015, according to data compiled by Bloomberg. Shariah-compliant money managers are seeking more Islamic investments as the amount of sukuk issuance remains dwarfed by assets. “If we’re able to come up with innovative products in this space, from the traditional right up to alternative, there would be very interesting take-ups.” “The intention is to build the Shariah capabilities out of Malaysia, but the ambition that we have for the Islamic business is that of a global one,” Ong said. The investment plans are part of an effort to increase the portion of Islamic assets to a quarter of the company’s assets under management by 2020 from 8 percent now, she said. ![]() RHB Group Asset, which oversees 54 billion ringgit ($13.5 billion), will offer the new Islamic funds in Malaysia and may make some of them available in Brunei, Indonesia, Singapore and the Middle East, according to Ong. Washington-based Pew Research Center estimates that Islam will remain the world’s fastest-growing major religion over the next few decades. Shariah law forbids investments in shares of companies with excessive debt or which are involved in activities considered unethical such as gambling, prostitution, and alcohol or pork-related businesses. RHB said it’s ambitions extend beyond Malaysia, whereas Mandiri’s new funds will target investors in Indonesia, the most-populous Muslim nation. ![]() dollar Shariah-compliant investment in August, said Mungki Ariwibowo Adil, head of product development and management. Jakarta-based PT Mandiri Manajemen Investasi will set up as many as four Islamic funds within the next year after establishing its first U.S. RHB Group Asset Management will offer at least four Shariah-compliant vehicles in 2017 that will invest in private equity, property, sukuk and shares, Managing Director Eliza Ong said. “Bearing in mind that Asia houses two-thirds of the Muslim population, Asian countries are most well-positioned to leverage from this demographic.” “There will be positive growth as investors continue to look for steady and sustainable returns, but we do not anticipate a spike,” said Raj Mohamad, managing director at Singapore-based consultancy Five Pillars Pte. in the past year. While demand for investments that comply with the Koran’s tenets is rising, about $9.5 trillion of Islamic wealth still remains outside the Shariah finance industry, Malaysia International Islamic Financial Centre estimated in February. and Indonesia’s PT Bank Mandiri plan new Islamic funds, expanding an industry that’s lured global money managers from BNP Paribas SA to Schroder Investment Management Ltd. The asset management units of Malaysia’s RHB Bank Bhd.
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