Malaysia’s Islamic capital market has continued to gain significant traction and garnered a larger share of the overall capital market as at end-2020, with a commanding 65.85%. ¹

In fact, its market size recorded RM2.26 trillion as at December 2020, 10.8% higher, compared to RM2.04 trillion as at end-2019, according to the Securities Commission Malaysia (“SC”) in its latest annual report. ¹

Meanwhile, the Asset Under Management (“AUM”) of Islamic fund management had risen by 20.1% to RM216.8 billion as at December 2020, from RM180.52 billion as at end-2019. ¹

This is another double-digit growth seen from the year before. The Islamic AUM stood at RM180.52 billion as at end-2019, registering a 13.66% increase from RM158.83 billion the year before. ²

On prospects of the capital market, the domestic capital market continued to play its vital role in financing economic activity and intermediating savings and is expected to remain resilient and orderly, underpinned by Malaysia’s strong macroeconomic fundamentals. ³

Investing in Shariah-compliant funds merely refers to investing in financial products that are in accordance with Shariah law. ⁴

There is also a misconception that only Muslims can invest in Shariah-compliant products.

In a nutshell, a Shariah-compliant unit trust fund is a collective investment fund that offers investors the opportunity to invest in a diversified portfolio of Shariah-compliant shares, Shariah-compliant fixed-income securities, and other Shariah-compliant money market instruments. ⁵

Generally, the benefits of investing in any unit trust fund are that investor’s risk exposure is reduced by way of diversification; and also benefit from the power of compounding returns.

On top of that, the funds are professionally managed by a licensed fund management company; are regulated by the SC; and offer an affordable and low barrier of entry.

Another added advantage of investing into Shariah-compliant funds is that it strictly supports businesses that adhere to ethical and moral standards when it comes to investments, which in turn could also mean incorporating ESG (“Environmental, Social and Governance”) criteria into the consideration of the stock picking.

With over 26 years of experience, Hong Leong Asset Management Bhd (“HLAM” or “The Company”) is ranked no. 6 amongst unit trust management companies in Malaysia⁶ and offers a range of both conventional and Islamic funds that are managed by professional fund managers.

Hong Leong Islamic Asset Management Sdn Bhd (“HLISAM”), a subsidiary of HLAM, is a licensed Islamic fund management company that offers solutions tailored specifically to manage investments of corporates and high net-worth individuals.

HLISAM has been appointed by HLAM as its external fund manager, with effect from 17 April 2020, to provide Islamic investment solutions through portfolio management services.

Hong Leong Dana Makmur, one of HLAM’s funds, has recently won five individual fund awards at the Refinitiv Lipper Fund Awards 2021, as shown below:

“At HLISAM, our aim is to be respected in the industry for providing Shariah-compliant wealth accumulation services for all investors driven by the principle of ‘Al-Falah’, meaning ‘accumulation of wealth for now and hereafter’,” said HLISAM’s Chief Executive Officer Noor Aini Shaik Awab.

“Together with the team from HLAM, we are embarking on a strategy to make Islamic asset management a leading offering in Malaysia by leveraging on Shariah investment principles, digital technologies and young talents,” she added.

The COVID-19 pandemic has resulted in the rapid need for digitalisation in adapting to both the new way of doing business as well as investing.

In an effort to bring convenience to HLAM’s customers and to cater to an increasingly tech-savvy society, the Company had launched its online investment platform ‘HL iSmart Invest’ to spur rising retail investor demand for online investing.

HLAM’s customers, via HL iSmart Invest, can now seamlessly access their investment account as well as unit trust product information and perform transactions from anywhere.

To top it off, both new and existing HLAM investors will be able to enjoy 0% sales charge** on all participating funds via HL iSmart Invest, and this offer is valid until 31 December 2021.

**Terms and Conditions apply.

For more information about HLAM and HLISAM, scan the QR code below:

To know more about HLAM’s Islamic Funds, contact Hong Leong AM Customer Experience at 03-2081 8600 or Email: [email protected].

  HongLeongAssetManagement

  @hongleongam

  Hong Leong Asset Management Bhd