20 Aug 2008
Prudential to expand Shariah fund cooperation between Malaysia and Middle East
KUALA LUMPUR - Prudential Fund Management Bhd (PFMB) in Malaysia and Prudential Asset Management Limited (PAMD) in the Dubai International Financial Centre (DIFC) – both part of UK-Headquartered Prudential plc - today signed a Memorandum of Understanding (MoU) to expand marketing cooperation and distribution of Shariah funds in Malaysia and the Middle East.
According to the MoU, both operations would work closer on distributing Prudential-managed Shariah funds in both Malaysia and the Middle East.
This a result of a recent agreement signed by the Securities Commission Malaysia (SC) and the Dubai Financial Services Authority (DFSA) to promote the cross marketing and distribution of Islamic funds.
Prudential is one of the first companies to take advantage of this new agreement.
The signing ceremony was witnessed by Prudential Corporation Asia, Chief Executive, Fund Management, Arne Lindman and YBhg Dato Zarinah Anwar, Chairman of the Securities Commission Malaysia.
At the signing ceremony, Prudential Corporation Asia’s Chief Executive, Fund Management, Arne Lindman said: "Malaysia and Dubai are two key operations where we manage and offer Shariah products and therefore, it is a natural partnership for both companies to offer products in their respective markets. We are grateful for the Government support and favourable regulatory environments that has encouraged us to expand our geographical reach."
PFMB is one of Prudential’s hubs for managing Islamic funds. Based in Kuala Lumpur it currently manages six Shariah Funds and Prudential BSN Takaful funds valued at RM 629 million. PFMB also manages offshore Shariah assets worth RM 294 million. PAMD, established in 2006, is the distribution hub for Shariah investment products across the Middle East.
Mark Toh, CEO of PFMB said: "We are delighted to expand cooperation within the company to ensure that customers across Malaysia and the Middle East can benefit from a fuller range of Islamic investment products and services from Prudential."
Suraj Mishra, CEO of PAMD said: "We are encouraged by both markets’ efforts to enhance the exchange of resources, expertise and investment products. This provides an excellent opportunity for Islamic Finance leaders like Prudential to provide an expanded choice of products across Malaysia and the Middle East.
In Asia, Prudential’s asset management business is one of the region’s largest. With operations in 10 markets, it has more top five rankings than any other regional player, and US$68 billion in funds under management as of 30 June 2008.
Notes to Editors
1. About Prudential Fund Management Berhad
PFMB is part of Prudential plc (United Kingdom). Prudential plc is an international financial services group providing retail financial products and services and fund management to many millions of customers worldwide. PFMB was incorporated in November 2000 and is a wholly owned subsidiary of a Malaysian resident holding company, which is in turn a subsidiary of and controlled by the Prudential group of companies.
In addition to retail unit trusts PFMB also offer a range of Portfolio Management Services as well as customised structured products for institutional, corporate and high net worth customers. The company is also building its business as the centre of Islamic Fund Management for the Prudential Group.
As the fund management centre for Prudential’s group in Malaysia, PFMB is currently managing Prudential Assurance Malaysia Berhad and Prudential BSN Takaful funds commencing 1 January 2008. With this latest move, PFMB’s net assets has grown to over RM 12 billion consisting of RM 3.65 billion from the retail unit trust business and approximately RM 8 billion from private mandate. Prudential Fund Management Berhad is currently managing a total of 38 unit trusts funds since its establishment in 2001.
The ultimate parent company of the Prudential Group is Prudential Plc whose shares are listed on the London and New York Stock Exchanges.
2. About Prudential plc
Prudential plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. The Group has been in existence since 1848 and has £256 billion in assets under management as at 30 June 2008. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.
This statement may contain certain "forward-looking statements" with respect to certain of Prudential's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words "believes", "intends", "expects", "plans", "seeks" and "anticipates", and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate. This may for example result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential's actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential's forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements it may make.