CIMB to launch Dublin-domiciled Islamic fund

LONDON: Malaysian CIMB-Principal Islamic Asset Management will launch its first Islamic global equity fund domiciled in Europe, targeting central banks and insurers, its chief executive said yesterday. Datuk Noripah Kamso said the Dublin-domiciled fund would be launched by the end of the year.

“We are focusing a lot more on Islamic asset management,” Kamso said. CIMB-Principal is a joint venture between Malaysia’s second largest lender, CIMB Group, and the asset management arm of US Principal Financial Group. It is one of the largest fund management companies in Malaysia.

Kamso said the fund aims to attract investments from long-term players such as takaful — Islamic insurance — companies and central banks. It will use the EU’s UCITS III standards, even though the fund is aimed at Malaysian and other Asian investors.

The fund manager is planning expansion in Europe from 2010 onwards. CIMB-Principal also plans to develop new funds investing in Islamic global bonds, or sukuk, Islamic Asia regional equity and Asia regional sukuk.

Islamic, or syariah-compliant, investments avoid sectors such as weapon production, alcohol and pornography and avoid speculation or interest payments. Earlier this year, consulting firm Oliver Wyman estimated that by 2012 Islamic assets will reach $1.6 trillion. -- Reuters