Reliance Capital Asset to Launch Islamic Funds

KUALA LUMPUR — The Malaysian unit of Reliance Capital Asset Management, India’s largest asset management firm, plans to launch its two maiden Shariah-compliant funds as it seeks to tap into Malaysia’s importance as a Shariah-compliant financial hub and the growing demand for Islamic funds from the region.

Reliance Asset Management (Malaysia) Sdn. Bhd. said in a statement Tuesday the two funds–a quantitative Global Equity fund and an India Country fund–will be the first in a series of funds it is planning from Malaysia to target Islamic finance investors.

Reliance Capital Asset to Launch Islamic Funds

“We are targeting institutional investors for these funds but eventually we will broaden our reach to include the retail market,” Reliance Capital’s international business chief executive, Vikrant Gugnani, told Dow Jones Newswires.

“Our Malaysian company will be the flagship venture in the Islamic asset management business and a global hub for Shariah-complaint products,” he said. The total net asset value of Islamic funds in Malaysia currently exceeds MYR22 billion. Continue reading