SINGAPORE (14 October 2021) – Maybank Asset Management Singapore (MAMS) announced Thursday the launch of its Maybank Asian Growth & Income – Islamic Fund, Singapore’s first Shariah-compliant balanced fund that utilises quant investing technology and ESG screening.
The Fund aims to give investors exposure to a unique mix of Shariah-compliant ESG stocks in Asia, global sukuk as well as gold ETFs. It hopes to give investors a monthly income of 5% dividend payout per annum, targeting an annual return of 6% to 7% per annum based on dividend re-invested.
The “ethically focused Islamic investments” will also serve the wealth management needs of investors who want to advocate socially responsible investing or ESG (Environmental, Social and Governance) investing.
In a press release, MAMS CEO, Goh Keat Jin said, “In line with Maybank’s mission of humanising financial services, we strive to be financially inclusive and innovative. The launch of Maybank Asian Growth and Income – Islamic Fund is an extension of Maybank’s efforts to expand our 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.”
Investors may participate in the upside potential of equities and the low volatility of Sukuk via the fund, which also aims to capture capital growth from multiple sources, said Mark Chua, MAMS Fund Manager and Lead Data Scientist. The downside risk of the Fund is reduced given the diversified portfolio of sukuk, equity and gold ETF.
MAMS is drawing on its internal quantitative investing expertise to curate a list of Asian stocks to include in its portfolio. This enables the managers to react to changing market scenarios quickly to seize opportunities in different market cycles, Chua said. The managers have also integrated a stock’s ESG performance in its assessment process as part of a multi-factor model, enabling them to prioritise inclusion of companies with better ESG scores, Chua added.
Rachana Mehta, MAMS Regional Co-Head of Fixed Income said the Fund’s returns will be supported by the scarcity of outstanding sukuk compared to conventional bonds as well as the wider credit spreads between sukuk and bonds. MAMS other income fund – Global Sukuk Income – Islamic Fund – launched in 2019, has today a fund size of SGD60 million under management.
The newly launched Fund is distributed through Maybank Singapore and will be made available to other platforms. The minimum investment sum is SGD1,000 with a sales charge of up to 5% upfront and a management fee of 1.25% pa. The targeted annual return of 6%-7% pa is net of management fee.-/- www.halaluniverse.net
Credit Photo: Patricia Coroi (Unsplash.com)
