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Feature singapore investor Forum 2008
Taking the economic pulse
Among the themes discussed at this year’s International Adviser Singapore Investor
Forum were the use of Shariah-compliant products, the attractiveness of commodities,
financial stocks, Indian equities and tax planning for those wishing to retire to the region
Haroon Ahmad, head of
business development,
EIS Asset Management
Justin Oliver, deputy chairman,
fund selection committee,
Collins Stewart Asset Mgt
Fund managers from
London, the Channel
Islands, New York, Dubai
and India travelled to Asia
to discuss the latest market
developments, trends and
prospects for their asset
classes with International
Adviser’s Singapore readers
in October.
More than 100 financial
advisers attended the
Singapore Investor Forum,
where they heard talks on
commodities, the financials
sector, multi-manager
and multi-asset investing,
Indian equities, and Asian
countries’ savings and
retirements patterns and
tax systems.
Following the main presentations
delegates were
invited to quiz speakers on
their investment topics and
the wider global economic
conditions. They later had
the opportunity to attend a
series of smaller seminars.
The investment managers
represented at the event
were HSBC Global Asset
Management, New Star
Asset Management, Collins
Stewart Fund Management,
EIS Asset Management and
Castlestone Management.
Friends Provident International
(FPI) provided the
tax and retirement speakers
and seminar. Below
we outline the main points
from the presentations.
Haroon Ahmad, head of
business development,
EIS Asset Management
Sharia-compliant asset
management
Ahmad outlined the origins
of Islamic – or Shariah
– investing. He explained
a core principle was that
money has no intrinsic
value and is merely
a method of measuring
real value. For this reason,
he told delegates, the use
of leverage was strongly
discouraged.
He said the primary
source for Shariah investment
principles was the
Koran and practices of the
Prophet Muhammad, which
led to a focus on ethical
INTERNATIONAL ADVISER [www.international-adviser.com] DEcEmbER 2008
investments that are shaped
by the exclusion of certain
commercial sectors, including
alcohol, weapons and
tobacco. The prohibition of
speculation or gambling, or
the accrual of interest – that
is, using money in its own
right to make more money
– meant financial companies
are also excluded from
Shariah products.
Shariah products
include sukuks (Islamic
debt instruments), takaful
(mutual insurance policies)
and equity products (subject
to screening). Ahmad
said property funds were
particularly popular with
Islamic investors because
the underlying investment
was a tangible asset not
based on speculation.
Another attractive feature
was that the steady rental
income, which is permitted
in Shariah investment,
whereas an interest payment
is not.
There are also money
market instruments known
as commodity murabas,
which are designed for
liquidity management.
Ahmad explained that
Shariah boards reviewed
and approved investment
products to ensure they
comply with Islamic law.
He added that the boards
played a key role in product
development because
an investment could not
get off the ground as a
Shariah product without
their say-so.
Ahmad said Shariah
investment was growing
by between 15% and 20%
a year, and that according
to forecasts assets in
such products would reach
$1trn by 2010.
Justin Oliver, deputy
chairman, fund selection
committee, Collins Stewart,
Asset Management
Lessons from a decade
of managing multi-asset,
multi-manager funds
The importance of diversified
asset allocation was a
central theme in Oliver’s
presentation. He cited
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