Business

Wednesday February 25, 2009

India’s Reliance Capital to make M’sia its Islamic hub

BY DALJIT DHESI


PETALING JAYA: India’s largest asset manager Reliance Capital Asset Management Ltd aims to stamp its mark in the Islamic fund management business worldwide by making Malaysia its international hub for global Islamic investment activities. The company will soon open its first office in Kuala Lumpur.

“We have already incorporated our subsidiary in Malaysia and are in the process of setting up the back-end operations. The hiring of the team is also under way,” said Vipul Thakkar, its senior product manager for international business, in an e-mail reply.

“This entity will be involved in the Islamic asset management business and will be Reliance Capital Ltd’s international hub for all Islamic investment activities conducted globally.”

Reliance Capital Ltd is the parent of Reliance Capital Asset, and forms part of the Reliance-Anil Dhirubhai Ambani Group.

Reliance Mutual Fund, a unit of Reliance Capital, is currently one of India’s leading mutual funds, with a footprint that covers over 300 cities in India.

Reliance Capital would be launching syariah feeder funds as well as developing and managing such products in-house once the Malaysian office was operational, Thakkar said.

An industry player said Reliance Capital, with its vast experience, could help the domestic fund management industry grow as it could develop funds out of Malaysia, and at the same time, help distribute local funds overseas.

Reliance Capital, together with Kuwait’s Global Investment House, were given the nod last November by the Securities Commission (SC) to establish their Islamic fund management operations.

The latest three foreign fund management companies to be offered Islamic fund management licences are Aberdeen Islamic Asset Management Sdn Bhd, Nomura Islamic Asset Management Sdn Bhd and BNP Paribas Islamic Asset Management Malaysia Sdn Bhd.

Kuwait Finance House (M) Bhd, DBS Asset Management and CIMB Principal Islamic Asset Management had also received their Islamic fund management licences.

The SC is also talking to other prospective Indian asset management firms to establish operations in Malaysia and reviewing applications by other international financial institutions keen to make Malaysia their regional and global centre for Islamic fund management activities.

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