Malaysia’s Affin Bank Plans to Roll Out Country’s First-Ever Islamic Digital Asset Fund

Malaysia’s Affin Bank plans to launch an Islamic version of its Cross Light Capital Performa Digital Asset Fund by the third quarter of this year.

This goal will be realized in partnership with an asset management firm, local outlet StarBiz reported Tuesday, citing head of wealth management Calvin Goon Cheng Yu.

Shariah-compliant funds, another name for Islamic funds, offer investment options that follow Islamic law. These funds avoid interest entirely, since Shariah law prohibits it.

The executive told the outlet that the current market slump, with Bitcoin dropping from $69,000 to $60,000, is a buying opportunity for digital assets.

He also believes the Islamic product will offer a good way to diversify investments beyond traditional stocks, bonds, and gold.

An Affin Bank spokesperson verified the comment, stating it was made during Monday’s press conference for AFFIN INVIKTA x Malaysia’s Top 30 Women of Excellence Awards 2024.

Digital Asset Fund With Cross Light Capital Targets Affluent Clients

Affin Bank teamed up with local investment firm Cross Light Capital to launch Malaysia’s first digital asset fund last month. The Performa Digital Asset Fund targets affluent clients and offers access to digital assets through exchange-traded funds (ETFs) and products (ETPs).

The fund invests in Bitcoin, Ether, and companies connected to blockchain technology, but only through publicly traded investment tools. This exclusive offering is available solely to Affin Bank’s invitation-only Affin Invikta suite. The fund also holds investments in well-known companies like Coinbase and Ubisoft.

Malaysia’s Affin Bank Targets US$30m AUM with Dual Digital Asset Funds

While there’s initial interest in the fund despite the market downturn, it hasn’t quite taken off yet, Goon said. Affin Bank is aiming to grow the product’s assets under management (AUM) to at least US$30m, combining both the conventional and Islamic versions of the fund.

To attract younger investors, Affin Bank plans to launch more digital asset products in the future.
“Younger demographics are increasingly entering the market,” Goon told the outlet. “Affin, being a non-legacy bank, is aiming to appeal to a different market segment. Therefore, we are developing more attractive offerings to cater to current market demand.”