Wahed announces plans to partner INCEIF on Shariah robo-advisory research

• Project to be carried out by INCEIF Masters students, with guidance from Wahed
• 4-month study also collects data to understand gaps relating to the platform

Digital investment management (DIM) company Wahed Technologies Sdn Bhd has announced its plans to partner with INCEIF (International Centre for Education in Islamic Finance) soon. The partnership will involve a research on the level of awareness on Shariah robo-advisory among Malaysians.

The project will be carried out by INCEIF Masters students, with guidance from Wahed, under the university's Action Based Learning (ABL) programme. Wahed joins a growing list of industry players, government agencies and non-profit organisations (NGO) who have partnered with INCEIF through the ABL programme to undertake projects by solving current business issues or developing new solutions.

Wahed’s digital investment management services provides Malaysians access to a Shariah-compliant robo-advisory portfolio that is transparent and impartial. The company expresses intent to expand the roll out its digital investment management services across the Southeast Asia region.

"Amidst this period of heightened economic volatility brought on by the Covid-19 pandemic, Malaysians need to optimise their investment strategies. Wahed provides Malaysians better access to secure financial options that meet their long-term investment goals while omitting high minimum amounts to get started, high fees and the daunting task of becoming familiar with financial jargons,” says Wahed country executive director Mohd Izzat Fadhli Azman (pic).

“This is why we are excited about our partnership with INCEIF. Not only will it provide an analysis of the state of Shariah robo-advisory in Malaysia, it will also provide us with potential frameworks for us to set in place that can help generate awareness and increase participation rate in both urban and rural areas."

Aside from identifying the awareness and sentiment of Malaysians investing via robo-advisors, the 4-month long study will also collect data to understand the gaps or issues relating to the platform as well as suggest solutions and best practices to attract potential investors.

The data collected will be compiled and used as a preliminary analysis that will help in benchmarking the nation's Shariah robo-advisors exposure rate against countries around the globe. Findings, frameworks, methodologies and recommendations will then be presented to the Wahed management team for their action.

Understanding passive investment

Wahed’s partnership announcement came after the company announced the release of a new report, which aims to provide clarity on active and passive investment options to Malaysian investors.

Specifically, it serves as a guide to make sound investment decisions and understand the performative comparison between Unit Trust Funds (UTFs) and Exchange Traded Funds (ETFs). It also provides a dive into the topic of Islamic index-tracking investment strategy from a Malaysian retail investor perspective.

"Evident in Budget 2020, the government is quickly gravitating towards fintech with a large chunk of the budget apportioned to boost the digital economy. We, as the nation's first licensed Shariah-compliant robo-advisory platform, want to ensure inclusivity by providing access to halal investments for stronger financial well-being,” says Mohd Izzat.

“Malaysia is on track towards becoming a pioneer in Islamic Digital Economy within the region and we intend to play an active role by sowing seeds through educating the general public on robo-advisory investments.”

The report also provides an in-depth understanding of what actually happens when you invest through Wahed, besides best strategies to consider when investing as well as a comparison to both active and passive funds available to Malaysians.

The report can be accessed here.