CIMB Niaga Partners with Principal Indonesia to Launch USD-Denominated Sharia-Based Equity Fund

TEMPO.CO, Jakarta - Indonesian banking company CIMB Niaga in partnership with PT Principal Asset Management or Principal Indonesia launched the Principal Islamic ASEAN Equity Syariah Mutual Fund. This is Indonesia’s first US dollar-denominated Sharia-based mutual fund product that focuses on investment in ASEAN, except for the Philippines because there has not been a full signing.

CIMB Niaga's head of Preferred, Wealth, and Insurance Business, Ariteguh Arief, said the company focuses on providing optimal banking services or one-stop financial solutions. The latest mutual fund, which focuses on investment in the ASEAN region, is expected to complement and optimize the diversification of customers' investment choices.

"We hope that this partnership will continue to grow and provide optimal benefits for our customers throughout Indonesia," he said in an official statement on Monday, May 6, 2024.

The US dollar-denominated sharia-based equity fund, said Ariteguh, is relevant to ASEAN's increasingly significant investment position globally. ASEAN is now collectively the fifth-largest economic region in the world, with a combined GDP surpassing US$3 trillion. 

Additionally, the ASEAN region also has a large population, touching 650 million residents. The large population has succeeded in boosting the region’s economic performance over the last decade, with average growth of 4 to 5 percent.

ASEAN’s role as an alternative manufacturing center to China, its abundant natural resources, and its tourism potential also present as an attractive investment destination. These factors pushed CIMB Niaga and Principal Indonesia to launch the Sharia-based equity fund.

Ariteguh said, this product has optimal returns and is aimed at customers with aggressive risk profiles. Customers can easily purchase this product through CIMB Niaga branches, the OCTO Mobile digital banking application, and OCTO Clicks internet banking.

"With easy registration, user-friendly digital banking services, and complete features such as cash flow reviews, comparison of mutual fund options, and attractive promos such as free purchase fees, we will provide a comfortable transaction experience for customers."

President Director of Principal Indonesia, Naresh Krishnan, added that they have worked together with CIMB Niaga for the last 15 years. "We are very pleased to be able to collaborate with CIMB Niaga to distribute our main offshore mutual fund product, namely the Principal Islamic ASEAN Equity Syariah Mutual Fund," he said.

"Through the presence of the Principal Islamic ASEAN Equity Syariah Mutual Fund, customers can expand their investment choices and diversify their portfolios in foreign equities denominated in US dollars and focus on investing in the ASEAN region," said Krishnan.

ANNISA FEBIOLA

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