Wahed Technologies (Wahed) Launches The 1st Active vs Passive Islamic Funds Report for Malaysia

Wahed Technologies Sdn Bhd (Wahed)
2020-11-26 09:58 1361

KUALA LUMPUR, Malaysia, Nov. 26, 2020 /PRNewswire/ -- Wahed Technologies Sdn Bhd (Wahed), a Digital Investment Management (DIM) company licensed by the Securities Commission Malaysia, have published a report exclusively for Malaysian investors to comprehend and appreciate active and passive Islamic funds investing strategies in Malaysia.

The report finds that the Islamic Exchange Traded Funds (ETFs) included by Wahed in their Malaysia Portfolios outperform most Islamic Equity Unit Trust Funds in Malaysia. This presents a strong case to retail investors to pay serious attention to Passive, Index-tracking investment products in their respective investment journeys. The report can be used as a guide by existing and potential investors to make sound investment decisions, understand the performance comparison between Unit Trust Funds (UTFs) and ETFs along with a deep-dive into the topic of Islamic index-tracking investment strategy from a Malaysian retail investor perspective.

"Evident in Budget 2020, the government is quickly gravitating towards fintech with a large chunk of the budget apportioned to boost the digital economy. We, as the nation's first licensed Shariah-compliant robo-advisory platform, want to ensure inclusivity by providing access to halal investments for stronger financial well-being. Malaysia is on an unprecedented track towards becoming a pioneer in Islamic Digital Economy within the region and we intend to play an active role by sowing seeds through educating the general public on robo-advisory investments," said Wahed's Country Executive Director, Mohd Izzat Fadhli Azman.

Wahed also announced its plan to partner with INCEIF The Global University Of Islamic Finance soon. The partnership will involve a research on the level of awareness on Shariah robo-advisory (funds management applications) among Malaysians. The project will be carried out by INCEIF Masters students, with guidance from Wahed, under the university's Action Based Learning (ABL) programme. Wahed joins a growing list of industry players, government agencies and non-profit organisations (NGO) who have partnered with INCEIF through the ABL programme to undertake projects by solving current business issues or developing new solutions.

Mohd Izzat Fadhli Azman also added, "Amidst this period of heightened economic volatility brought on by the COVID-19 pandemic, Malaysians need to optimise their investment strategies. Wahed provides Malaysians better access to secure financial options that meet their long-term investment goals while omitting high minimum amounts to get started, high fees and the daunting task of becoming familiar with financial jargons. This is why we are excited about our partnership with INCEIF. Not only will it provide an analysis of the state of Shariah robo-advisory in Malaysia, it will also provide us with potential frameworks for us to set in place that can help generate awareness and increase participation rate in both urban and rural areas."

Aside from identifying the awareness and sentiment of Malaysians investing via robo-advisors, the 4-month long study will also collect data to understand the gaps or issues relating to the platform as well as suggest solutions and best practices to attract potential investors. The data collected will be compiled and used as a preliminary analysis that will help in benchmarking the nation's Shariah robo-advisors exposure rate against countries around the globe. Findings, frameworks, methodologies and recommendations will then be presented to the Wahed management team for their action.

About Wahed Invest

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Source: Wahed Technologies Sdn Bhd (Wahed)