The Islamic finance industry, with assets estimated at over $750 billion, is one of the fastest growing in the world, due in part to increased acceptance of Islamic funds, also known as Shari’ah or Syariah funds. These alternative investments, which must conform to Islamic law, are attracting investors from around the globe. According to Charles River Development (Charles River), an award-winning provider of innovative financial systems and services, technology is playing a key role in helping global investment professionals create and manage the compliance aspects of these and other ethically-based funds.
The world’s largest managers of ethically-based funds use the Charles River Investment Management System (Charles River IMS) for complete trade-cycle support for all security types. Managers of ethically-based funds require rule building and maintenance capabilities to ensure exclusion of specific securities, investment types or asset classes in their portfolios. Many systems require investment professionals to create a rule for each restriction list specific to each account – a manual process that can be time consuming and subject to error. Charles River IMS automates the process and ensures compliance by allowing clients to maintain restriction lists specific to each portfolio and create a single rule which can, in real-time, address numerous restrictions across multiple portfolios. As a result, clients can easily manage Shari’ah and other ethically-based funds, confident that they are compliant.
CIMB-Principal Asset Management Berhad (CIMB-Principal), headquartered in Kuala Lumpur, Malaysia, is considered an expert in Shari’ah-compliant funds and has 14 of such funds in Malaysia. CIMB-Principal relies on Charles River IMS to manage compliance for its portfolios.
“As more and more customers look for a convenient way to link their investments with their personal values, Islamic asset management – both domestically and regionally – has become a key priority for us,” said Noripah Kamso, Chief Executive, CIMB-Principal Asset Management Berhad. “Charles River’s integrated system helps ensure that we meet our customers’ needs.”
“Charles River IMS is a powerful, yet easy-to-use system with flexible tools that enable clients to quickly build and monitor rules specific to their portfolios,” said Cameron Field, Managing Director Asia-Pacific, Charles River Development. “As demand for Shari’ah funds grow, our clients are increasing their reliance on these tools to create and manage funds that comply with stated guidelines and compete with mainstream products.”