Islamic Fund Management
76
Chart 4.5: Allocation of Shariah Investment Assets from Total AuM (end-2017)
Source: SC
Note: Balance of RM8.21 billion is classified as ‘others’, which include uninvested cash, REITs, wholesale funds,
ETFs, derivatives, business trusts, futures and close-ended funds.
Demand for Shariah-compliant assets can be traced back to Tabung Haji, which acted as a
catalyst for product innovation when it was founded in 1963. It had shaped the value chain for
Shariah-compliant assets. Apart from equities and sukuk, Malaysia’s ICM also offers a diverse
range of Islamic funds consisting of CIS which include unit trust funds, wholesale funds, REITs
and ETFs, private retirement scheme (PRS) and private mandate.
provides a broad description of the performance of key ICM segments. Given the
industry’s robust performance, Malaysia took second place in terms of global Islamic AuM
(excluding Iran) as at end-2017, with RM170.8 billion, and also boasted the world’s most
numerous Islamic funds.
Table 4.3: Performance of Key Segments of ICM in Malaysia
Islamic AuM as a
percentage of Total
Funds Managed
Shariah-compliant
Securities
Sukuk Islamic REITs
As at end-2017, Islamic
AuM stood at RM170.8
billion (or 22.2%) of
Malaysia’s total funds
managed, valued at
RM776.23 billion.
As at end-2017, 688 stocks
(or 76%) listed on Bursa
Malaysia complied with the
SC’s Shariah screening
methodology. These had a
market capitalisation
worth RM1.1 trillion
against the entire market’s
total market capitalisation
of RM1.9 trillion.
As at end-2017, the
value of domestic
sukuk issuances stood
at RM168.68 billion (or
53.3%) of the total
bonds issuances
Domestic sukuk
outstanding comprised
58.8% of total domestic
debt securities.
As at end-2017, there
were 4 Islamic REITs
against a total of 18
REITS, with a market
capitalisation of RM19.1
billion (or 41.0%)
compared to RM46.5
billion for the overall
market.