Called the Aberdeen Asia Pacific including Japan Syariah Fund, it was launched on 12 April and is targeting demand from Indonesian investors who are looking for diversification into higher growth overseas markets, said Sigit Wiryadi, the firm’s managing director for Indonesia
“We have high hopes that we can build a following for this product,” Wiryadi said.
“It’s conventional fund sister has an outstanding track record and this one should appeal to Indonesians – non-Muslims and Muslims alike – who are looking to diversify and get access to higher growth overseas. Many of the names that we will hold should be familiar to the retail investor.”
The firm believes timing is good because regional equity markets are looking for investment opportunities ahead of an expected cyclical upturn, supported by the US Federal Reserve’s dovish tilt, a weaker dollar and renewed Chinese stimulus.
The key secular theme of the fund is growth in regional consumption, which is supported by rising demand for goods and increasingly services.
“We will manage the fund conservatively through a relatively concentrated core of companies we have known for years,” said Bharat Joshi, lead manager of the fund and the firm’s investment director for Indonesia.
“Our aim is to invest over the cycle and keep [the] turnover low. We’re not looking for excitement, but steady outperformance over the longer term,” he said.
