AIA Singapore, a unit of Hong Kong insurer AIA Group Ltd, has launched the first shariah balanced investment-linked plan fund in the city state in partnership with US asset manager Franklin Templeton.
The AIA Shariah Global Diversified Fund is a diversified portfolio of global shariah-compliant stocks and sukuk or Islamic bonds. It invests in the Templeton Shariah Global Equity Fund, Franklin Global Sukuk Fund and Franklin Shariah Technology Fund at a 45:40:15 ratio.
It’s only available to customers who hold one of six investment-linked plans with AIA Singapore, AIA Group says in a statement recently.
According to AIA Singapore Chief Investment Officer Liu Chun Yen, the insurer is “thrilled” to be the first to launch the fund to meet rising demand from Muslim consumers in Singapore where such investment options are limited.
Liu predicts that the overlap between shariah-compliant finance and environmental, social and governance principles will also draw non-Muslims consumers who are interested “to maximise capital growth while investing responsibly”.
AIA Group had total assets of US$340 billion as of end-2021 and California-based Franklin Templeton had $1.5 trillion of assets under management as of end-April 2022.
