RHB launches Shariah-compliant asset fund, aims to achieve RM100 million in sales next year

RHB Shariah Multi Asset Fund launched by RHB Asset Management Sdn Bhd (RHBAM) recently will provide investors with access to a globally diversified Shariah-compliant investment strategy.

The initiative follows a growing demand for Shariah-compliant investment solutions especially within the global multi-asset space.

RHBAM in a statement said, the wholesale feeder fund will primarily invest in Shariah Multi Asset Fund or Target Fund, which is a USD denominated share class of the HSBC Global Funds ICAV. 

It functions by strategically allocating investments across a broad spectrum of instruments including cash, equities, foreign direct investments (FDI), eligible collective investment schemes as well as fixed income and other transferable securities.

The collaboration between both banks ensure that the implementation of the Target Fund will run smoothly (photo credit: Malaysiakini)

At the same time, the Target Fund also provides global diversification across a wide range of asset classes such as equities, listed real estate, sukuk, and commodities which offer investors an all-in-one Shariah-compliant solution. 

RHBAM said it allows investors to align their financial goals with their values while benefiting from active asset allocation designed to optimise performance.

HSBC Bank Malaysia Berhad (HSBC Bank) in collaboration will serve as initial distributor and the RHB Shariah Multi Asset Fund manager by relying on their strong multi-asset investment capabilities and extensive Islamic finance expertise.

“Through this collaboration, we aim to showcase our agility in meeting evolving investors’ needs, enhance awareness of their diverse investment solutions, strengthen RHBAM’s brand recognition, strengthen relationships with existing investors, capture new investor segments, and drive growth in Assets Under Management (AUM) for Shariah-compliant funds,” RHBAM said. 

RHBAM Managing Director and Chief Executive Officer, Ng Chze How was appointed on September 2024 after the merger of RHB group and AmBank (photo credit: Ng Chze How LinkedIn)

RHBAM stated that it aims to achieve RM100 million in sales within the first year of the Target Fund’s launch.

RHBAM Managing Director and Chief Executive Officer, Ng Chze How said, they are delighted to introduce RHB Shariah Multi Asset Fund as a testament to their commitment in providing innovative and values-based investment solutions for investors.

“By collaborating with HSBC, we are able to offer a unique opportunity for global diversification within a Shariah-compliant framework, leveraging the expertise of both organisations. 

This Fund underscores our agility in responding to market demand and our commitment to expanding our suite of diverse investment offerings,” he said.