MALAYSIA: Spurred by the fact that the global economy is back on its feet, BNP Paribas Investment plans to double its Islamic assets this year which currently stand at US$500 million, said its Southeast Asia head of sales Cheng Tan Feng.

The firm’s assets would largely be boosted by demand from Southeast Asia, he added. These assets will be coming from Takaful insurers and private banks, with investors opting for equities as they embrace riskier assets, he added.

He attributed this to the fact that activities in Islamic finance are picking up in the region, where an increasing number of investors from the institutional side are putting more money into the industry.

Property fund under stress

UAE: Deyaar Development, a Dubai-based regional real estate company, deferred its AED500 million (US$136.1 million) property fund due to heavy outflows by international investors.

It was reported that the delay was caused by the pull out of a Lebanese bank and an international institutional investor, which had committed AED200 million (US$54.4 million) to the fund last October. The report further states that the pull out occurred a month after Dubai World announced it would seek a standstill on its US$26 billion of debt.

Launched last summer, the fund was set up by the emirate’s second-largest developer by market value to purchase distressed properties, including those from its own portfolio.

It was jointly set up by Dubai Islamic Bank, which owns a 42% stake in the developer.

Islamic funds launched

MALAYSIA: OCBC Bank (Malaysia) has launched the Pacific ELITE Fund Series which includes three Islamic funds — Pacific ELIT Islamic AsiaPac Balanced Fund, Pacific ELIT Dana Aman and Pacific ELIT Dana Dividend. Head of consumer financial services Charles Sik said the bank expects sales of about RM200 million (US$49 million) for the series. The funds come with a total size of 800 million units with a minimum initial investment of RM10,000 (US$3,000). The series is marketed by OCBC Bank and managed by Pacific Mutual Fund.

Busy year for RHBIM

MALAYSIA: RHB Investment Management (RHBIM) plans to launch at least five Islamic funds in efforts to increase its assets by 20%, said managing director Sharifatul Hanizah Said Ali. By launching more Islamic funds, RHBIM is targeting its assets under management under Islamic funds to be on par with conventional funds within the next one to two years. Currently, Islamic assets form only a quarter of its total assets under management.

Eye on BRIC

MALAYSIA: TA Investment Management (TAIM) has launched the TA BRIC and Emerging Markets Fund, which will invest in Shariah compliant equities and equity-related securities of firms with businesses in Brazil, Russia, India and China (BRIC).TAIM chief investment officer Choo Swee Kee this is because the BRIC countries are rich in natural resources and have good economic growth prospects.

Choo added that the investment strategy of the fund is to place a minimum of 70% of its net asset value in Shariah compliant equities and equity related securities and up to 30% into domestic Sukuk. The fund has an approved size of 400 million units. It will be offered at 50 sen (US$0.15) per unit for 21 days from the 25th February with a minimum investment of RM1,000 (US$294).

Rebranding exercise

MALAYSIA: In the wake of the establishment of its parent company Amundi Group last December, Crédit Agricole Asset Management Islamic Malaysia will change its name to Amundi Islamic Malaysia to align itself with the group.

According to managing director Mohamad Damshal Awang Damit, the rebranding effort will not in any way affect the company’s commitment towards its customers.