ASB Capital and Principal Asset Management to Launch Islamic Multi-Asset Fund for GCC and Southeast Asian Investors

ASB Capital and Principal are partnering to launch the ASB Principal Multi Asset Fund, a Shariah-compliant investment solution designed to give investors diversified global exposure to multiple asset classes through a single, actively managed portfolio.

The partnership links ASB Capital’s regional platform and distribution reach with Principal’s global investment expertise and asset-allocation capabilities. ASB Capital plans to distribute the Fund to clients in Bahrain and across the GCC. Principal is planning to make the strategy available to Islamic clients in Southeast Asia through a feeder structure.

The Fund is expected to invest across global sukuk and other fixed-income securities, Islamic equities, Sharia-approved ETFs and funds, and a smaller allocation to Islamic private-market opportunities. The structure is intended to provide flexibility to position the portfolio through different market cycles while offering investors diversified exposure and income. Principal will also commit capital from its own balance sheet; the amount has not been disclosed.

Munirah Khairuddin, CEO & Head of Principal Asset Management Berhad added that the partnership combines Principal’s global investment and asset-allocation capabilities with ASB Capital’s regional platform and product suite. The inclusion of public markets and selected private-market opportunities, she said, expands the investment universe available to clients and supports the development of solutions for different risk profiles and investment horizons.

Munirah Khairuddin, CEO & Head of Principal Asset Management Berhad, said: “The Fund brings together Principal’s global asset-allocation experience and ASB Capital’s regional expertise in a solution designed for Islamic investors. By combining sukuk, Islamic equities and selected private-market opportunities, it offers clients a way to access a range of asset classes through one portfolio, with the flexibility to respond to changing market conditions.”

She added: “We are pleased to work with ASB Capital and build on Principal’s longstanding partnership with CIMB to serve clients across the GCC including Bahrain and Southeast Asia. We believe this collaboration can help broaden access to diversified Islamic investment solutions, supported by specialist teams across asset classes.”

The distribution plan builds on the partners’ existing regional relationships. In the GCC, ASB Capital’s platform is expected to support access across multiple jurisdictions, including Bahrain. In Southeast Asia, Principal plans to use a feeder structure and work with a local bank to reach Islamic clients through the bank’s network.

The partnership comes as demand for private credit in the GCC broadens beyond traditional institutional investors. In the meeting, Principal described increased interest over the past 12 to 18 months from wealth-management and other non-sovereign clients, as well as some private-banking clients, alongside established demand from sovereign and pension investors. That trend provides wider market context for the Fund’s private-market component; the specific size and composition of that allocation have not been announced.

The launch supports ASB Capital’s strategy to expand its investment platform across public and private markets and develop managed solutions for clients’ evolving portfolio needs. Principal’s stated international reach also supports the partners’ ambition to serve investors in markets including Malaysia, Indonesia, Singapore, Thailand and Hong Kong.

For his part, Charles Brooke, Senior Managing Director and Head of Middle East, Central Asia & Africa, Principal Asset Management, Senior Executive Officer, Principal Asset Management (DIFC), said: “Through this partnership, ASB Capital will offer and distribute an Islamic multi-asset solution to their clients both in Bahrain and across the GCC, and concurrently, Principal will distribute to our Islamic clients here in Southeast Asia.,.”

“We see the demand for private credit in the GCC across a number of different investment groups,” he added.

“We really want to widen our Islamic product suite, particularly in the GCC and Southeast Asia, while delivering relevant investment solutions that meet the evolving needs of our clients.