Zukri (centre) witnesses the launch of BIMB-Arabesque i Dividend Fund Global 1 here yesterday. — Bernama photo
KUALA LUMPUR: Bank Islam Malaysia Bhd’s unit, BIMB Investment Management Bhd (BIMB Invest) is targeting for a 40 per cent jump in asset under management (AUM) next year from both retail and institutional investments.
Its chief executive officer, Najmuddin Mohd Lutfi said to date BIMB Invest is managing about RM810 million in investments across equities, sukuk and cash, and expects to hit RM1 billion in AUM by year-end.
“There is still ample liquidity among retail and institutional investors. (Armed) with the country’s strong fundamentals, we are confident of the growth despite the challenges facing the global economy,” he told reporters at the launch of BIMB-Arabesque i Dividend Fund Global 1 here yesterday.
The BIMB-Arabesque i Global Dividend Fund 1 is Malaysia’s first multi-currency Syariah and environment, social and governance-compliant global equity fund, of which BIMB Invest partnered with Arabesque Asset Management Holdings Ltd, the UK.
“The BIMB-Arabesque will be one of the strong contributors to our growth next year, which is expected to contribute around RM100 million next year.
“We are also planning to launch at least two more funds with Arabesque next year, as well as managing some institutional mandates to drive growth,” Najmuddin said.
Earlier, in his speech BIMB Invest chairman Datuk Seri Zukri Samat said although the struggling global economy created significant volatility to the financial services industry, the global Islamic finance industry continued to show resilience.
He said of RM344.4 billion of total net asset value for the unit trust industry in Malaysia, 14.3 per cent or RM49.3 billion is Syariah-compliant retail unit trust funds.
Hence, it is an area with enormous potential, he added.
He said the newly launched fund is targeted at corporate and institutional investors seeking capital appreciation and the partnership with Arabesque gives BIMB Invest greater flexibility to invest into the global market.
Outlining Arabesque’s cutting-edge fund management technology, he said it is very unique and proven successful globally as it outperformed not only Syariah-compliant funds but also conventional funds.
Najmuddin said the fund is offered in Malaysian ringgit and the US dollar at 50 sen or US50 cent a unit for 45 calendar day beginning Nov 5 with a minimum capital investment of RM30,000 or US$10,000.
The fund aims for a six per cent annual income payout, he added. — Bernama