BNP Joins Schroder Taking Indonesia's Islamic Stock Funds Global
- Manulife also setting up Shariah-compliant investment vehicle
- Indonesian Islamic banking growth stalled in last two years
Traffic moves along a road during rush hour at dusk in Bandung, West Java province, Indonesia, on Monday, April 27, 2015. The rupiah completed its biggest weekly drop since March after data showed Indonesia’s economy shrank for a second straight quarter and the government clashed with the central bank over interest-rate policy.
Photographer: Dimas Ardian/BloombergBNP Paribas SA, Manulife Asset Management and Schroder Investment Management Ltd. have set up global Islamic stock funds in Indonesia, a much-needed boost for the nation’s Shariah finance industry.
The money managers all started Jakarta-based plans last week targeting Islamic stocks worldwide, following a November ruling allowing local investment managers to run dollar-denominated Islamic vehicles. Saudi Arabia and Malaysia dominate the global Shariah funds industry, which grew by an annual average of 6.6 percent in the five years through 2013, according to a report by the Islamic Financial Services Board in Kuala Lumpur.