Al Rajhi Banking & Investment Corporation has announced a strategic partnership with AHAM Asset Management Berhad (formerly known as Affin Hwang Asset Management Berhad) in order to expand its suite of Shariah-compliant wealth offerings. This partnership is aimed at helping clients to meet their distinct investment needs in an ever evolving economic landscape.
The partnership itself will combine Al Rajhi bank’s extensive business network with AHAM’s investment capabilities to offer greater values to clients in building a globally diversified portfolio that can weather the economic storm.
As part of the partnership, the first of AHAM’s products to be onboarded is the AHAM Shariah Gold Tracker Fund, which is an open-ended retail feeder fund that aims to provide investors with investment results that closely track the performance of gold prices. The fund feeds into the TradePlus Shariah Gold Tracker ETF, which is managed by AHAM Capital.
“We are pleased to roll out the AHAM Shariah Gold Tracker to the market, as this will enhance the Bank’s overall product offerings and provide a broader suite of solutions for our investors. For investors, the fund will provide them a Shariah-compliant initial access to gain exposure to gold, which is a commodity during financial crises. It will also provide investors with investment results that closely mirror the movement of gold prices,” said Al Rajhi bank Malaysia Chief Executive Officer Arsalaan Ahmed.
“We look forward to forging a close alliance with our new distribution partner Al Rajhi bank Malaysia and rolling-out a steady pipeline of investment solutions, as well as strategies to clients. Against a backdrop of market volatility and frequent geopolitical flare-ups, diversification is crucial for investors to manage risk in their portfolio and smoothen returns. As a long-term store of value, gold offers a refuge for investors by providing capital preservation alongside its role as a natural hedge due to its low correlation to other asset classes,” added Chan Ai Mei, Chief Officer, Intermediary Distribution & PRS, AHAM Capital.
The fund itself offers good value for investors who seek exposure into gold through a Shariah-compliant structure and have a moderate risk tolerance level. To achieve its investment objective, the fund can invest up to 90% of its Net Asset Value (NAV) in the TradePlus Shariah Gold Tracker (Target Fund) and a maximum of 10% of its NAV in Islamic money market instruments and/or Islamic deposits.
