The days when Malaysia was striving to establish Islamic finance’s value proposition and to carve out a niche for itself are long gone. The country has emerged as a leader of what today is a viable segment of an increasing number of capital markets around the world. Expanding from its early accomplishment, in 2002, of issuing the first global sovereign sukuk bond1 and, in 2007, the largest-ever corporate sukuk, worth US$4.8 billion, Malaysia continues to be one of the main countries issuing sukuks. It currently accounts for almost two-thirds of the US$80 billion world sukuk market.
Malaysia remains firmly ahead of its peers in Southeast Asia in terms of the development of Shariah-compliant funds. Nonetheless, the industry has had to change over the years not only to retain this lead but also to respond to client demands for more diverse investment choices. It is the nature of this evolution that we seek to analyse, by looking at a wide range of metrics (from industry make-up to historical performance) of funds originating from this country.
The Islamic Financial Services Industry, comprising Islamic Banking, Islamic Insurance (Takaful) and the Islamic Capital Market are areas that have become an important segment within the global financial markets. Malaysia's objectives are to develop a viable Islamic Financial Services Industry.
The asset management company of Select Opportunity Fund and Dana Izdihar fund is Malaysia-based Hwang-DBS Unit Trust Bhd. DBS Asset Management is the advisory company to Hwang-DBS. Teng has 12 years' experience managing absolute return mandates and David has been managing institutional funds for seven years.