Al Rajhi Banking & Investment Corporation (Malaysia) Bhd (alrajhi bank Malaysia) has partnered with Manulife Investment Management (M) Bhd to expand its shariah investment offering in line with its ambition to become the #1 Islamic innovation bank in Malaysia.

Under the partnership, the Bank will distribute Manulife Investment Management (M) Bhd’s Manulife Shariah Global REIT Fund (“the Fund”) which offers Shariah-compliant real estate investment opportunities locally and from across the globe. This is the first time alrajhi bank Malaysia is making Shariah REIT investment available to its customers.

The partnership gives alrajhi bank Malaysia customers access to global REIT for a broader range of property investments—in addition to the 14 Shariah-compliant unit trust funds available to them via the Bank now—including large-scale infrastructure projects typically off-limits to retail investors. The Manulife fund is available at all alrajhi bank Malaysia branches effective 3 March 2023. 

Shariah global REITs combine features of real estate and trust funds and offers investors several benefits over other forms of investment, including the ability to diversify their risk profile with a range of real estate based on their risk appetite and financial goals. Investors also potentially receive a higher dividend distribution and enjoy stable and sustainable returns. Shariah global REITs have outperformed global REITs since 2010 (Morningstar & IdealRatings as of 31 December 2021).

Manulife Investment Management (M) Bhd, a wholly owned subsidiary of Manulife Holdings Bhd, has been operating in Malaysia for 14 years. Headquartered in Toronto, Canada, it operates in 19 geographies worldwide and provides comprehensive solutions for investors with its strong capabilities in the public and private markets backed by the resources of a global financial organisation.

alrajhi bank Malaysia Chief Executive Officer Arsalaan (Oz) Ahmed said, “We are confident that this partnership with Manulife Investment Management (M) Bhd will bear positive results for our customers. With the global economy reopening post-Covid-19, we’ve seen a trend towards 

investments in infrastructure to support recovering industries and in new economies such as ecommerce and healthcare. This fund offers our customers potential for stable and growing dividends, long term investment growth opportunities and exposure to emerging global trends. Our customers will now have the ability to grow their wealth to meet their financial goals through our continued expansion in product offerings”. 

Manulife Investment Management (M) Bhd’s Chief Executive Officer Jason Chong said, “The partnership between Manulife Investment Management (M) Bhd and alrajhi bank Malaysia is timely as REITs have become a focal point in today’s economic landscape. The backbone of the economic recovery story is the demand for infrastructure build-out, from data centers, warehouses to medical centers and retirement homes – which are areas of growth in face of the world’s aging population.

Global REITs can withstand different market conditions due to its lower correlation with other asset classes and can provide steady dividend yields. This feature is even more prevalent for investors in 2023, as heightened global inflation and ongoing geopolitical developments means markets will remain volatile.”

“Through partnering with alrajhi bank Malaysia—a wholly owned subsidiary of the world’s largest Islamic bank, Al Rajhi Bank Kingdom of Saudi Arabia—we are confident that the Manulife Shariah Global REIT Fund could provide the Bank’s customers with more options to diversify their portfolio for long-term growth”, Chong said.