Singapore is ripe to establish itself as a global Islamic wealth management hub, Maybank Asset Management executives and market experts said during the launch of the bank’s newest Shariah-compliant fund.
The bank has launched the Maybank Asian Growth and Income – Islamic Fund, touted as Singapore’s first Shariah-compliant balanced fund. It provides a mix of securities across Shariah-compliant Asian stocks, global Sukuks, as well as gold ETFs.
The fund aims to achieve a potential monthly dividend payout of 5% per annum and an annual return of 6% to 7% by taking an active asset management approach, the bank added in a press release.
Whilst wealth management has been a hot topic amongst banks in Asia for the past years, there has been little headway in Shariah-compliant wealth management. In Singapore, Shariah-compliant investment solutions remain elusive, with only about five Islamic investment funds available in the market.
But the market is more than ready, according to a survey by Financial Alliance’s Islamic Wealth Advisory (FAiWA), which found that over 80% of Muslim investors asked would prefer Shariah investment solutons if they are available.
Islamic investments also meet the wealth management needs of investors who advocate for Environmental, Social and Governance (ESG) investing.
In the media briefing, representatives also debunked misconceptions that Islamic investments underperform compared to conventional investments.
A recent market comparison of the Shariah universe of global stocks versus the conventional stock universe shows that the global Islamic equity index outperforms the broader global equity index by 56% over a 10-year period and 31% over a 5-year period, Maybank said.
The new Maybank Asian Growth and Income – Islamic Fund is distributed through Maybank Singapore, and is available with a minimum investment sum is S$1,000.