Could you provide a brief journey of how you arrived where you are today?
I have been involved in the management of equity funds for over 20 years and still like to manage funds directly. The investment process that I implement for international equities is systematic. This means that I continually monitor certain metrics, measuring investors’ preference between investment ‘styles’ such as value, growth, momentum, quality and financial strength, as the focus of investors’ attention moves between them.
My move to Shariah compliant investing came in 2007 when I was managing a top-performing UK Equity Income fund for Aviva. I was approached by a Shariah compliant bank based in Bahrain and asked whether the process could be transferred to Shariah compliant equities. I demonstrated that it could, and after setting up the UK’s first Shariah compliant unit trust for that bank, I moved to Kuala Lumpur to head up Reliance Asset Management Malaysia (RAMMy). In 2009 RAMMy received an Islamic fund management license from the Securities Commission Malaysia.
What does your role involve?
The overriding responsibility of running a regulated business is to comply with all local and international regulatory requirements. Other responsibilities range from financial planning to business development to human resources. Clearly this requires the support of a well qualified and skilled team which I have been able to put in place since 2009. As chief investment officer, I have the responsibility for investment performance.
What is your greatest achievement to date?
Last year the WSF Reliance Global Shariah Growth Fund was the best performing Shariah compliant Global Equity Fund. The fund has also been number one since its launch and this demonstrates very well the benefit of the systematic investment process that we run.
Which of your products/services deliver the best results?
The Shariah compliant Global Equity Fund is our flagship product.
What are the strengths of your business?
Reliance Capital Asset Management has a strong brand name internationally and this supports us when marketing the services of RAMMy, especially in the Middle East, and also helps in establishing relationships with top quality business partners. For example we run a Shariah compliant India fund as well as a Shariah compliant China-India Fund, and so for these strategies we utilize the on-the-ground presence of Reliance in India to advise on the portfolio of Indian investments. Likewise China Asset Management (HK) is the investment manager of the China portion.
What are the factors contributing to the success of your company?
We have put together a first-rate team in Kuala Lumpur. The Islamic investment expertise is here and we are using our previous international investment experience to offer products that are innovative. We believe that the combination of world class investment techniques and the Islamic expertise available in Malaysia will enable us to build a solid reputation in Islamic fund management.
What are the obstacles faced in running your business today?
The regulatory environment has been tightening since the financial crisis. Whilst an important protection for investors, this can make launching funds a slow, expensive and complicated process especially across international borders.
Where do you see the Islamic finance industry in the next five years?
We believe that the fastest growth, apart from the Middle East, will come from Malaysia and Indonesia which have good regulatory frameworks. The growth geographies to watch out for in the future will be Bangladesh, India, Pakistan and Turkey. Undoubtedly the industry will be bigger and better in five years time.
Name one thing you would like to see change in the world of Islamic finance.
We estimate that the assets under management in the Islamic fund management industry are only around US$58 billion.
This is dwarfed by the US$25 trillion invested in conventional funds. I would like to see more of the funds sourced from Islamic nations invested in Shariah compliant products.