IslamicFinance.de

Indonesia fund management companies are readying to market Islamic/shariah-based mutual funds that will invest in offshore instruments. This follows Indonesia’s regulation, announced late last year, that allows shariah mutual funds to use at least 51 per cent of their investment components in offshore instruments such as bonds and stocks. The move is seen to allow investors an option to diversify their investments and deepen the country’s shariah mutual funds market. In addition to this, the government also allowed these funds to invest up to 100 per cent of their shariah mutual funds units in overseas bonds. With the change in regulations, a host of fund management firms have announced their plans to launch products that will invest in offshore instruments.