DBS ASSET MANAGEMENT LIMITED SINGAPORE AND HWANG-DBS MALAYSIA BERHAD
JOINTLY LAUNCH GLOBAL ISLAMIC INVESTMENT ENTITY
KUALA LUMPUR, 28 NOVEMBER 2008 - DBS Asset Management Limited of Singapore (DBSAM) in partnership with its long standing Malaysian partner, Hwang-DBS Malaysia Berhad [Hwang-DBS (M)], today launched its global Islamic investment management entity called Asian Islamic Investment Management Sdn Bhd (AIIMAN). This foreign-owned entity is set up with a paid-up capital of MYR 10 million with DBSAM owning 51% and the remaining 49% held by Hwang-DBS (M). The joint venture entity is headquartered in Malaysia and will start Shariah investment management activities soon.
The launch was officiated by Chairman of the Securities Commission Malaysia, Yang Berbahagia Dato' Sri Zarinah Anwar. Also present to witness the launch are Chief Executive Officer of DBSAM, Deborah Ho, and Director of AIIMAN and Director of Hwang-DBS (M), Alex Hwang.
Both partners are committed to lending their technical expertise and distribution capabilities in order for AIIMAN to reach out to regional and global markets. In doing so, DBSAM will be providing technical expertise while Hwang-DBS (M) will be providing expertise in Shariah Infrastructure and systems.
AIIMAN's distinct ability to offer the best in International Shariah investment management services will be drawn from a blend of proven track record award winning fund managers from the partners as well as the ability to tap on expertise from members of the renowned International Shariah Advisory Board.
Ms Ho, in her speech delivered during the launch ceremony, said, "Our partnership with Hwang-DBS (M) fits well with our blueprint to expand in this region and this joint venture underscores our commitment to partner Hwang-DBS. Together we hope to grow and add value to the Shariah fund industry in this region."
Ms Ho stressed that there has never been a better time to venture into the global Islamic asset management arena. "Under the current global financial climate, institutional investors are looking for investments that guard them from the ravages of the financial crisis and by nature, Islamic investment recognises the importance of avoiding investments in highly leveraged companies and complex derivatives."
"AIIMAN is a natural progression of its parent companies' initiatives to embark on the global Islamic finance industry. The first step was taken when DBS set up the Islamic Bank of Asia (IB Asia) which provides wholesale commercial banking, corporate finance and capital markets services. AIIMAN will be a valuable provider in its efforts to develop the Asian Islamic banking markets," added Ms Ho.
The market for Islamic investment products is growing at about 15 - 20 per cent a year and Shariah equity fund assets alone, are forecast to jump from USD 15 billion to
USD 53 billion. There is an increased demand for Shariah compliant products across the Middle East, Europe and Asia.
In line with the demand from today's investors, Nor Azamin bin Salleh, Chief Executive Officer of AIIMAN said, "I trust that with the calibre and experience of the core team, AIIMAN will be able to offer sound investment solutions after having weathered through the different market cycles over the years. We shall continue to endeavour to preserve our investors' interest through strong internal risk management processes, whilst striving to maximise returns within acceptable risk tolerance".
With its parent companies' close proximity to Asian markets and specialist knowledge of Asia, AIIMAN plans to leverage on the wide Asian network of DBS Bank as well as IB Asia, to gain foothold in key markets for Shariah products, specifically into most major cities in Asia and also the Middle East.
Azamin further explains the investment opportunities for AIIMAN in Asia, "Most Asian countries have large current account surpluses and massive domestic liquidity. Asia comprises more than 50 per cent of the world's population but controls less than 10 per cent of global wealth. It is catching up fast with the emergence of vibrant economies such as China and India. Moreover, the macro risks in Asia have reduced significantly ever since the last financial crisis whilst corporate governance has moved to a higher level across companies and sectors. Moreover, valuations are relatively cheap - Asian markets are trading at discounts to the developed markets, but with vastly improved free cash flows and capital efficiency ratios."
We believe that with the full support from Bank Negara, the Securities Commission, and the Monetary Authority of Singapore, AIIMAN will achieve its goal of being the Preferred Asian Shariah Investment Specialist in this region," concluded Azamin.
About Asian Islamic Investment Management Sdn Bhd
DBSAM was granted approval by the Securities Commission on 17 October 2008 to establish an Islamic fund management company in Malaysia. The corporate vehicle to undertake such regulated activities of Islamic fund management is Asian Islamic Investment Management Sdn Bhd (AIIMAN), which is jointly owned by DBSAM and HwangDBS (51% and 49% ownership respectively). In this joint venture DBSAM will provide portfolio and research expertise, and HwangDBS will provide the platform to outsource certain back-office functions and technical experience in the setting up and management of Islamic fund activities. For more information, please log on to www.aiiman.com.
About DBS Asset Management Ltd
DBS Asset Management (DBSAM) ranks among the most experienced and best known fund management companies in Asia. With offices in Singapore and Hong Kong, and associated companies in Malaysia, China, India and Thailand, we manage money for institutional, private and retail investors across Asia. An award winning fund manager with more than 25 years of experience and an established track record of consistent positive returns, DBSAM delivers effective investment management solutions for Asia-focused clients that cover a wide spectrum of asset classes, with core competency in global fixed income, Asian equities and absolute return strategies. DBSAM is a fully-owned subsidiary of DBS Bank Limited, one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS' "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region. For more information, please visit www.dbsam.com.
About Hwang-DBS Malaysian Berhad
Since its inception, Hwang-DBS (M) Berhad ("HDBS") has continued to be a leading, integrated financial services group in Malaysia that provides a wide range of products and services namely, stockbroking, wholesale banking, sales and management of unit trust fund and institutional funds, derivatives trading and consumer financing. HDBS is backed by two major shareholders namely Singapore's largest bank, DBS Bank Ltd. and its founding shareholder, Dato' Seri Hwang Sing Lue. For more information, please visit www.hdbs.com.my.