Hong Kong’s Value Partners Group has launched its first exchange-traded fund in Malaysia, tracking shariah-compliant Chinese stocks, and has other offerings in the pipeline, including a shariah property fund and products focused on Southeast Asia.
According to the asset manager, the newly launched Shariah China A-Shares ETF is the world’s first Chinese equity ETF that tracks performance of the Dow Jones Islamic Market China A-Shares 100 Index.
The ETF will be listed on the Malaysian bourse on July 28, Value Partners says in a statement on July 12. The fund was launched by its local unit, Value Partners Asset Management Malaysia Sdn. Bhd.
Malaysia’s Kenanga Investment Bank and Malacca Securities are the fund’s market makers and participating dealers.
“The ETF will be initially subscribed by Value Partners Group and [other] potential investors,” Durraini Baharuddin, managing director of Value Partners Malaysia, tells Asia Asset Management. She did not identify the other investors.
The fund can invest up to 100% of its assets in shariah-compliant securities, with an option to invest a maximum 10% in Islamic collective investment schemes, Islamic money market instruments and/or Islamic deposits.
Durraini says Value Partners Malaysia will continue to expand its offerings.
“The investment products that Value Partners Malaysia will offer include Southeast Asia-focused quantitative investment solutions, such as ETFs, shariah-compliant products, as well as alternative investments,” she says.
According to Durraini, the company is currently fundraising for a Malaysian shariah property fund that focuses on purpose-built worker accommodations, with a strong environmental, social and governance focus.
Value Partners had US$14.2 billion of total assets as of December 2020.
