AHAM Asset Management Berhad ( AHAM Capital ) and Bank Islam Malaysia Berhad ( Bank Islam ) have signed a memorandum of understanding ( MOU ) aimed at expanding the accessibility of Shariah-compliant investment solutions to a broader segment of Malaysian investors.

Through this collaboration, AHAM Capital’s suite of Shariah-compliant funds will now be available through Bank Islam’s extensive distribution network, spanning over 100 branches across the country as well as its digital banking platforms.

The partnership comes amid a rising demand for value-based investment in the country. As of end-2024, the Islamic capital market accounted for over 63% of the total capital market, with Islamic assets under management reaching 246 billion ringgit ( US$58.25 billion ). These figures underscore the sustained growth and resilience of Malaysia’s capital market as an Islamic finance hub in the region, AHAM Capital says.

“Through this collaboration, we aim to provide greater access to our diverse range of Shariah-compliant offerings spanning equities, sukuk, and multi-asset strategies to meet long-term investment goals,” says AHAM Capital chief operating officer Chong Lee Choo.

“At the same time, we are seeing strong demand for Shariah-compliant and sustainable investments, not only from traditional investors, but also from a younger generation who are actively seeking to align their financial decisions with their values. Many are drawn to investments grounded in ethics, sustainability, and social purpose.

“As the alignment between Shariah principles and evironmental, social and governance ( ESG ) considerations gain greater recognition, we believe this partnership is well-positioned to support the next wave of growth in values-based investing. Both frameworks emphasize ethical conduct, social responsibility, and long-term sustainability which are concerns increasingly prioritized by investors,” he adds.

Five funds

To kickstart the collaboration, five of AHAM Capital’s Shariah-compliant funds will be made available through Bank Islam’s distribution channels. These include: -

• AHAM Aiiman Growth Fund, which focuses on high-quality, Shariah-compliant equities listed in Malaysia, targeting long-term capital appreciation;
• AHAM Aiiman Quantum Fund, which provides exposure to growth opportunities in Malaysian small and mid-cap equities;
• AHAM Aiiman Global Thematic Mixed Asset Fund, a flexible multi-asset strategy seeking to capture global megatrends through a Shariah-compliant lens;
• AHAM Shariah Gold Tracker Fund, which offers exposure to gold through a Shariah-compliant structure, where each investment of the fund is backed by physical gold; and
• AHAM Aiiman ESG Income Plus Fund, a qualified sustainable and responsible investment ( SRI ) fund that aims to provide steady income by investing in sukuk.

As part of the MOU, both institutions also plan to deepen collaboration to advance the adoption of Shariah and sustainable investing through investor education initiatives and potential product innovation to meet the diverse needs of investors.