NST BUSINESS
KUALA LUMPUR: The Securities Commission first launched the Digital Investment Management (DIM) framework in 2017 to democratise investment management.
This allowed incumbent and prospective fund managers to incorporate innovative technologies in offering automated discretionary portfolio management services to a wider range of investors.
To enhance investor’s access to flexible, transparent and diversified investments, three more digital investment companies were licensed last year, the Securities Commission said in its Annual Report 2019.
This year, Wahed Technologies Sdn Bhd became Malaysia’s first licensed Islamic digital investment manager and UOB Asset Management Bhd became the first incumbent to vary its licence to include DIM activities.
Three additional companies were also granted approval-in-principle status and are expected to be operational by early 2020.
“The DIM industry continues to evolve, recording over RM74 million of total assets under management (AUM) in two years.
“Both start-ups and incumbent fund managers have been tapping into this segment and embracing innovation to better engage with consumers, while at the same time making investments affordable and accessible to all,” the SC said.
Meanwhile, the SC said Malaysia continued to maintain its leadership in the Islamic capital market (ICM), particularly in relation to the issuance of sukuk and Islamic funds.
This solidifies efforts to enhance the country’s role as a prominent international centre for Islamic fund and wealth management.
ICM represented 63.57 per cent of Malaysia’s capital market, with a market size of RM2.03 trillion as at December last year, an 8.23 per cent growth over 2018.
The year has seen sukuk issuances valued at RM102.39 billion, representing 77.09 per cent of total corporate issuances, while Islamic AUM stood at RM180.52 billion, making up 21.93 per cent of the fund management industry.
Shariah-compliant securities comprised 64.06 per cent of total equity market capitalisation and was valued at RM1.1 trillion, the SC noted.