Interest In Shariah Investment Growing Despite Potential Economic Headwinds

KUALA LUMPUR, June 14 (Bernama) -- United Kingdom-based global investment Group, Aberdeen, is confident that interest in Shariah investment will grow, citing positive growth trends in the industry since 2009. Aberdeen also said there is growing appreciation for the value of Shariah compliant funds, despite potential economic headwinds and a weaker stock market. "We are confident that there will be even stronger growth," Aberdeen Asset Management Sdn Bhd, Managing Director, Gerald Ambrose said in a statement Thursday. He said there has been a lot of change, especially in the way Shariah investments are being used, to position the local funds industry internationally. "While there has been mixed success in attracting money from abroad, the effort has helped concentrate minds on what needs to be done at home to make the industry more dynamic," he added. Established in 2005, Aberdeen Asset Management has over US$1.72 billion (RM5.5 billion) in assets under management as of April 30, 2012, primarily in equity mandates sourced from public institutions investing in both domestic and overseas equities. With some US$3.61 billion (RM11.5 billion) invested in Malaysia, the Aberdeen Group is one of the largest foreign investors in the country's equities market. It has been steadily adding staff in Malaysia to both its conventional and Islamic investment arms, with a total seven equity fund managers plus two newcomers overseeing fixed income macro and credit, including Sukuk. He said Aberdeen's ambitions are to source funds from a wider base than at present, with retail funds a possibility. "Investor attitudes have changed from ten years ago. There is more recognition of the role of funds and portfolio planning but perhaps products have lagged behind this demand. "We hope that Aberdeen can be front-runners in this space," Gerald added. -- BERNAMA