Maybank Asset Management Singapore ( MAMS ) has launched Singapore’s first Shariah-compliant balanced fund, which offers a mix of securities across Asian stocks, global sukuk and gold exchange-traded funds.

Chief executive officer Goh Keat Jin says the Maybank Asian Growth and Income – Islamic Fund “adheres to Shariah principles and is suitable for investors seeking ‘halal’ returns or looking to diversify their portfolios in new markets. It is catered to socially responsible investors who wish to invest in Shariah-compliant activities.”

While Singapore has seen the growth in conventional wealth management solutions, it has lagged in its offerings for Islamic investment solutions. A survey conducted by Financial Alliance’s Islamic Wealth Advisory finds that over 80% of participating Muslim investors would prefer Shariah investment solutions if they are available.

Besides benefiting the Islamic community in Singapore, ethically focused Islamic investments will also serve the wealth management needs of investors who want to advocate socially responsible investing or champion environmental, social and governance ( ESG ) principles.

Contrary to the belief that Shariah investments offer limited potential returns as it is restrictive in scope, a recent market comparison of the Shariah universe of global stocks ( DJIM World Index ) versus the conventional stock universe ( MSCI AC World Index ) shows that the global Islamic equity index outperforms the broader global equity index by 56% over a 10-year period and 31% over a five-year period, MAMS says.

“The launch of Maybank Asian Growth and Income – Islamic Fund is an extension of Maybank’s efforts to expand our suite of wealth management solutions to investors. This includes serving the wealth accumulation objective of the Islamic communities in Singapore, Malaysia and Indonesia,” Goh says.