Asset managers, whose fund sizes have shrivelled to a fraction of what they were before the international financial crisis, are capitalising on this unique window of opportunity to think out of the box. Maybe, even destroy it. They are looking for transparent innovative products with minimal risks, which guarantee capital protection and relatively good returns. It appears that these asset managers are putting into practice what economist Paul Romer once said, “A crisis is a terrible thing to waste.”
Enter Islamic asset management
“The challenging environment of conventional markets is providing an incentive to explore this market segment,” said Bernardo Vizcaíno, managing director of Amsar Partners, an independent consultancy which creates and develops Shariah-compliant portfolios. “The asset managers are enhancing their understanding of Shariah-compliant products and gaining the ability to structure and launch such products more easily. There is also greater access to Shariah advisory platforms which allow these firms to build their Islamic finance capabilities without the need to create an internal board,” added Vizcaíno.
