JAKARTA. Maybank's fund management arm, PT Maybank Asset Management (Maybank AM), is set to launch the Maybank Syariah Equity Fund next month, a new mutual fund product to support the development of sharia products in the capital market in Indonesia.

Maybank AM director Denny R Thaher explained on Monday that the sharia mutual fund would be invested in infrastructure, construction, retail and consumer potential stocks listed on Sharia Effects Index (DES).

"We see considerable opportunities in the mutual fund industry. Options are still limited, while Muslim communities in Indonesia are very interested in sharia products," said Denny at the press conference held in Jakarta on Monday.

Denny said Indonesia's economic outlook was likely be become more positive soon. Hence, he expected the Maybank Syariah Equity Fund would be the first choice for investors. "Simulations we did with this product have illustrated that sharia mutual fund products have good potential yield with measured risk levels," he added.

As part of Maybank’s investment strategy and measurable risk management, 80 to 100 percent of the portfolio will be placed in equity securities that are listed on the DES. Approximately 60 to 80 percent of that will be invested in stocks at the Jakarta Islamic Index (JII) and under 40 percent of the portfolio will be invested in stocks outside the JII. Up to 20 percent of the total portfolio could be placed on sukuk (Islamic debt paper) or other market instruments based on sharia with maturities of less than one year.

"The Maybank Syariah Equity Fund will be offered on Nov. 3 for investments over Rp 100.000. Under our asset management plan (AUM), this product is targeted to reach Rp 500 billion in the first year," said Denny.

Denny added that Maybank would continue to deliver mutual fund products, which could be a key interest for customers with a long-term investment horizon. "We will release the next product in the near future. Sukuk is targeted this year, while discretionary funds early next year."

CEO of Maybank Asset Management Group, Nor'Azamin Bin Salleh explained that the launch of the Maybank Syariah Equity Fund was part of the Maybank Group's commitment to expanding its offering of sharia products. "We are also coming up with asset management plans in Japan, China and Australia," he said.

Maybank Asset Management Group already operates in three other ASEAN countries, namely Malaysia, Singapore and Thailand. The total of AUMs under Maybank Asset Management Group is US$3.6 billion, around 38 percent of which is in sharia products. (Ayomi Amindoni)

Editor: Barratut Taqiyyah Rafie