Reliance Asset Management Malaysia (RAMMy) today announced plans to launch two maiden Shariah compliant funds in Malaysia. The two funds — a quantitative Global Equity fund and the India Country Fund — will be the first in a series of funds that RAMMy, the Malaysian subsidiary of Reliance Capital Asset Management (RCAM), plans to roll out for Islamic investors.
This announcement is part of RCAM’s Islamic Asset Management strategy wherein it plans to develop its Malaysian subsidiary as a global Islamic finance hub for Shariah compliant products.
“Our Malaysian company will be the flagship venture in the Islamic asset management business and a global hub for Shariah compliant products. The long term objective is to target the retail Shariah market in the region. The overall strategy is to expand our fund management footprint across key global markets,” said Mr Vikrant Gugnani, Chief Executive Officer, International Businesses, Reliance Capital while making the announcement with Mr Ian Lancaster, CEO, RAMMy at Kuala Lumpur today.
RCAM is the largest AMC in India and along with its subsidiaries manages over $33 billion (as of Jan 29, 2010) across mutual funds, pension funds, managed accounts and hedge funds.
“Islamic finance is a serious niche business for Reliance and we would like to demonstrate our world class finance capabilities and investment skills in the Islamic asset management space. Over time we aim to create a sizable business and help establish Malaysia as the Global hub for Islamic asset management,” said Mr Lancaster.
The Shariah compliant funds will be managed out of Malaysia by RAMMy. For the India fund, the company plans to engage a local company as investment advisor with RAMMy as Shariah Investment Advisor.
RAMMy plans to target Islamic asset management opportunities in Malaysia and globally involving both Government-linked companies and the private sector.