Hong Leong Islamic Bank (HLISB) and Hong Leong Islamic Asset Management (HLISAM) have collaborated to launch an Islamic wealth management product, which is Malaysia’s first digital restricted investment account.
The Portfolio Investment Account (PIA-i) offers customers the ability to invest in Shariah-compliant unit trusts funds on a digital platform and manage their investments anytime, anywhere.
The PIA-i is a simplified investment product that allows customers to digitally diversify their personal investments across a blend of Shariah-compliant funds through HL Connect, the Bank’s digital banking platform. It is tailored to the financial needs of various customer segments including working adults, families with children and those who are socially and ethically conscious.
Through the PIA-i, customers’ funds will be invested into three Shariah-compliant investments: Hong Leong Dana Al-Izdihar, a money market fund; Hong Leong Dana Maa’rof, a balanced fund; and Hong Leong Dana Makmur, a Refinitiv Lipper award-winning equity fund.
The Shariah principle for this product is Wakalah bi Al-Istithmar, an agency contract where the investor authorises HLISB to manage the customers’ investment on their behalf.
Jasani Abdullah, HLISB’s Chief Executive Officer (CEO), said the PIA-i embraces inclusive banking services and accessible financial support by simplifying the investment process.
“With Malaysia’s accelerated transformation towards an advanced digital economy, the offering of HLISB PIA-i is another step towards the increased use of digital tools and technology in an ever-expanding digital first society.
“In addition, PIA-i also aims to serve and facilitate the journey towards a more superior personal wealth management,” Jasani said.
Noor Aini Shaik Awab (pic, right), HLISAM’s CEO, said digital technologies provide greater accessibility to investments as well as heightened consumer awareness on sustainability issues, Shariah-compliant asset management is expected to further develop in the next few years.
“We believe by leveraging Shariah investment principles with digital technologies, we will be able to make Islamic asset management a leading investment offering in Malaysia.
“Additionally, we are actively working on integrating environment, social and governance considerations into our existing Shariah investment processes to meet the growing demand of ethical and sustainable investment products,” said Noor Aini.