CIMB-Principal Islamic Asset Management Sdn Bhd (CIMB-Principal Islamic), a joint-venture Malaysian-based Islamic global asset management company between CIMB Group and Principal Global Investors, has recently obtained approval from the Central Bank of Ireland for the establishment of CIMB-Principal Islamic Asset Management (Ireland) Public Limited.

The newly established CIMB-Principal Islamic Asset Management (Ireland) Public Limited is the first Malaysian-based international Islamic funds platform domiciled in Dublin. It will act as an investment manager of a Dublin-based Undertakings for Collective Investment in Transferable Securities (UCITS) for Islamic funds.

Under the newly-launched platform, CIMB-Principal Islamic is registering three new UCITS-compliant equity funds: the Islamic Global Emerging Markets Fund; the Islamic Asia-Pacific ex-Japan Fund; and the Islamic ASEAN Equity Fund.  

These funds will eventually be registered and distributed in seven jurisdictions – the United Kingdom, Switzerland, Germany, Saudi Arabia, Bahrain, United Arab Emirates and Singapore. CIMB-Principal Islamic is the investment manager and master distributor for the Funds.

Dato’ Charon Wardini Mokhzani, Chief Executive Officer, CIMB Investment Bank says: “With this new Islamic Fund range in Ireland, institutional and retail investors globally will be able to see CIMB-Principal Islamic’s asset management track record. If the funds do well, not only will they attract investment but institutional investors may also appoint CIMB-Principal Islamic to manage their discretionary mandates too. This pioneering initiative to internationalise Malaysian Islamic asset management capabilities clearly supports the MIFC’s aspiration to be a global hub for Islamic finance.”

Jim McCaughan (pictured), President and Chief Executive Officer, Principal Global Investors, says: “Principal Global Investors is pleased to be a part of this important step forward in Islamic asset management. The combination of our global asset management expertise, with CIMB Principal Islamic’s leadership in Shariah investing provides a compelling case for investors. Additionally, our multi-boutique platform will enable us to bring a wide variety of investment capabilities to this important segment of the market. Principal Global Investors has had success for over a decade in our own UCITS platform and we are excited to share our knowledge and distribution with CIMB Principal Islamic.”

“Due to a common European standard, UCITS funds are now regarded globally as very well-regulated funds that have robust risk management procedures and a strong emphasis on investor protection,” says Charon. “A UCITS-compliant fund in effect gives one  a ‘European Passport’ - if a fund is authorised in one European Union (EU) member state, it can be distributed in any other EU member state without any additional authorisation. Furthermore such fund is distributed to a large number of countries across Europe, the Americas, Asia Pacific, the Middle East and Africa.”

With this establishment, CIMB hopes to realise the MIFC aspiration for Malaysia to become an international hub for Islamic finance, as this initiative will encourage large international funds to appoint  Malaysian Islamic asset managers.