RHB Bank, Bank Mandiri plan Islamic funds

Kuala Lumpur

THE race to tap an US$11.5 trillion pool of wealth held by Muslim individuals, institutions and governments is intensifying.

The asset management units of Malaysia's RHB Bank Bhd and Indonesia's PT Bank Mandiri plan new Islamic funds, expanding an industry that's attracted global money managers from BNP Paribas SA to Schroder Investment Management Ltd in the past year. While demand for investments that comply with the Koran's tenets is rising, about US$9.5 trillion of Islamic wealth still remains outside the Syariah finance industry, Malaysia International Islamic Financial Centre estimated in February.