Kuala Lumpur (19 Dec 2019) – The nascent Shariah-Compliant Exchange Traded Fund space is faced with a setback as Valuecap Sdn. Bhd. (“Valuecap” or “Group”) announced today that it is exiting the third-party asset management business.
Valuecap, which has two wholly-owned licensed asset management subsidiaries, VCAP Asset Managers Sdn. Bhd. (“VCAM”) and i-VCAP Management Sdn. Bhd. (“i-VCAP”) is in the process of exploring various strategic options with regards VCAM and i-VCAP, including divesting or winding up the companies.
Both VCAM and i-VCAP currently manage wholesale funds, while
i-VCAP is the largest issuer of Shariah-compliant ETFs. It has issued five Shariah-compliant ETFs including MyETF Dow Jones US Titans that offer investors exposure to the 50 largest Shariah-compliant companies listed in the US.
Both VCAM and i-VCAP are proposing to terminate their respective wholesale funds, while i-VCAP is exploring various options in relation to the management of the ETFs, including the possibility of transferring the ETFs to another licensed fund management company.
Any decisions made on VCAM and i-VCAP and the funds managed by them will be subject to the necessary regulatory approvals.
In the interim, VCAM and i-VCAP said they will keep clients and unit-holders informed of any developments on this matter as and when updates are available. The Group will also work closely with the relevant authorities during this period to ensure the exercise follows due process and complies with all regulatory requirements.
Further updates will be provided in due course, subject to consultation with the relevant stakeholders. -/- Source: Press Release, www.halaluniverse.net
