Malaysia’s second largest asset manager Principal Asset Management will offer its newest fund via TNG Digital, one of the biggest local e-wallet providers, under a “landmark” tie-up between the companies, underscoring the changing face of the industry in response to disruption from financial technology.
The asset manager, a joint-venture between Malaysian lender CIMB Group and US-based Principal Financial Group, says the Principal e-Cash Fund will be “made available soon through a landmark strategic partnership with TNG Digital”. The fund was launched on March 15.
“This long-term partnership is set to accelerate the development of e-wallet investment solutions for Malaysians,” Chief Executive Officer Munirah Khairuddin says in a statement on March 16. “Addressing the needs of Malaysians irrespective of their financial background, every Malaysian can now start to invest and inculcate the habit of invest, save and spend.”
Its spokespersons did not immediately respond to questions from Asia Asset Management (AAM).
TNG Digital is a subsidiary of Touch n Go Group, Malaysia’s largest e-payment card operator, with over 25 million active cards.
The tie-up between Principal Asset Management and the e-wallet provider is a response to growing investor demand for digital investment solutions, according to a fund manager at another local asset management firm.
“With the rise of robo advisers, which allows retail investors to invest easily via their mobile phones, traditional fund management firms need to step up their game in the digital front,” he tells AAM, speaking on condition of anonymity.
Principal Asset Management had 92.6 billion ringgit (US$22.51 billion) of assets under management as of end-2020.