MIDF Amanah Asset Management aims to breach the RM1 billion mark within three years by expanding distribution in the Asian region

Kuala Lumpur: MIDF Amanah Asset Management, the asset management arm of Malaysian Industrial Development Finance Bhd, aims to be a regional unit trust fund manager by growing its asset under management (AUM) to RM2 billion over the next five years.

The group's current AUM is at RM400 million coming from four equities and two offshore products.

Chief executive office Scott Lim said MIDF Amanah will not be in a hurry to launch new products but will instead focus on growth in equities markets, especially in emerging Asian countries.

"We aim to breach the RM1 billion mark within three years. By then, hopefully, we have already build a good track record to justify our existence," he said.

The strategy to expand distribution in the Asian region will cater to both Islamic and conventional investments. It will also offer products and services to institutional and retail investors.

"Money flows are currently going pro- Asia. This side of the world is the leader of the new millennium. We are bullish on Asian equities and believe by investing in the right region, the long-term returns will be more than investing in the old economy - the US and the UK," he said during an interview here recently.

MIDF Amanah, which was established in 1992, has gone through a management revamp when Lim joined in 2008, and he is keen to carve a niche market for the company in foreign equities.

Lim has almost two decades of experience in managing local and regional equity portfolios for both institutional and retail investments, including corporate and institutional funds, retirement funds, state and government funds as well as unit trust funds.

"We want to tap the growth in China, India and the whole of Asia. Instead of having a third-party fund manager, MIDF Amanah will train our in-house fund managers who can manage the funds in the long run, in line with our aim to be a regional player," he said.

The two funds launched recently, namely MIDF Amanah Asia Pacific Equity Fund and the MIDF Amanah Asia Pacific Islamic Equity Fund, mark its foray into the regional equity market.

To enhance investment returns, the manager encouraged no upfront sales charges to enable its investors to enjoy full investment capital.

Investors can look forward to a targeted absolute return of 8 per cent per year as this is also in line with those who are looking to move from the conventional relative return to an absolute return benchmark.

"Our target is investors who are not up for quick return but want to invest long term to enjoy optimum returns. 

"MIDF Amanah wants to be a fund manager that creates wealth for our customers," said Lim.