Ramlie Kamsari, Chief Executive Officer – CIMB Principal Islamic Asset Management proved to be a fascinating conversationalist. He drew me in and revealed the unquestionable ambition of the man and the global vision of the company he represents. This is all revealed in the following lengthy but engaging interview.
I was not overwhelmed. Shaking the hands of the young CEO of CIMB-Principal Islamic Asset Management (“CIMB-Principal Islamic”), Ramlie Kamsari, I stood with a respectful smile followed by banal greetings and gap-filling banter common to most introductory meetings. He came in a fitted suit, fresh shaven with hair neatly combed in place. With an engaging smile and a rather quiescent voice, I could hardly associate him with the gruff, aggressive, cantankerous image that I had created earlier of a win-at-all-costs banker. Perfectly ironed shirt and suit, and a tie knotted close to the neck (there was no gap between collar and bow) with an elaborate, though not bedazzling watch, and shined shoes, he was undeniably a man particular (but not over-zealous) about his appearance. He was also unassuming and there were no airs and graces about him. He shook my hands firmly, and as he walked around, he appeared as a man without a care in the world. surprised: this warm and engaging man was in the military! He appeared reserved at first, but as the interview progressed, it became increasingly evident that beneath his serene countenance lies a passionate ambition. This was a man that had searched for success with determination. Ramlie has always known to adapt according to the needs of the situation. He was not an obdurate man, set in his ways, inclined to believing that his way was the only way. Every experience held opportunities for education in three different ways: technically, practically and spiritually. And Ramlie likes to learn and to progress.
Ramlie was born in Singapore, the tiny nation island that sits at the mouth of Malaysia. During the British colonial period, it became an important trading post and to this day, Singapore represents a thoroughfare for traded goods. After gaining independence in 1965 from Malaysia, the steely Lee Kuan Yew oversaw the development of Singapore, creating the infrastructure for the island to thrive on the international scene. In just under 30 years, Singapore is today recognized as a
“I was shy and quiet as a child,” Ramlie reminisced, “but two things changed me: military and marriage.” Admittedly, I was surprised: this warm and engaging man was in the military! He appeared reserved at first, but as the interview progressed, it became increasingly evident that beneath his serene countenance lies a passionate ambition. This was a man that had searched for success with determination. Ramlie has always known to adapt according to the needs of the situation. He was not an obdurate man, set in his ways, inclined to believe that his way was the only way. Every experience held opportunities for education in three different ways: technically, practically and spiritually. And Ramlie likes to learn and to progress.
Ramlie was born in Singapore, the tiny nation island that sits at the mouth of Malaysia. During the British colonial period, it became an important trading post and to this day, Singapore represents a thoroughfare for traded goods. After gaining independence in 1965 from Malaysia, the steely Lee Kuan Yew oversaw the development of Singapore, creating the infrastructure for the island to thrive on the international scene. In just under 30 years, Singapore is today recognized as a developed nation, organized and functioning under a strong rule of law.
Singapore is also known for its cosmopolitan lifestyle. Global financial institutions, from banks to law firms have set up businesses in Singapore to cater to the ASEAN community. Singapore is a leading provider of financial services in the region and regarded as a wealth management hub. Indeed, it competes with London, Hong Kong and New York as a major financial centre, which is quite impressive for a country with little natural resources and a small population.
The global ambitions of Singapore are distinctively reflected in Ramlie. Prior to joining CIMB Group in 2004, he worked at Societe Generale, a French financial institution, Refco Group, an American financial services company and the Daiwa Group, a Japanese financial conglomerate. It is a truism to state these experiences developed his technical skills particularly in futures and options trading, but the diverse experience gave him exposure to different management styles as well as cultures which would influence his own approach to management. However, the experience which had the greatest impact on Ramlie’s own perspective on life and career was his first job, following his national service in the Singapore Armed Forces. In 1994, Ramlie joined the Singapore unit of Barings Bank, one year before the unceremonious collapse of one of the oldest British banks in the world.
“Everyone liked Nick, sometimes to a fault. He was friendly, and took time to talk to us. He was also driven and hard working.” Ramlie could have hardly seen that a few months later, Nick Leeson would be in the centre of a storm that consumed Barings. The young neophyte, Ramlie, could only look aghast as not only did he see his employer collapse, he was now associated with what was deemed as a “pariah” organization. “I was at the epicentre of the Barings collapse and being associated with Barings after the debacle had repercussions on one’s career. The authorities expectedly took a hard line on the fiasco. So I was deeply concerned about what it would mean for my future. Fortunately, after a brief, unwarranted hiatus, I was able to get back into the industry and join Daiwa, which was setting up a commodities trading unit at the time.”
Q1: The Islamic finance derivatives market remains small and controversial. Does the industry need Islamic finance derivatives? What benefits would it give to the industry?
“Certainly one can point to abuse in relation to derivative usage in the conventional markets, especially when they are used for pure speculation. That use of derivatives is clearly “gharar” and should be prohibited in Islamic finance.
However, derivatives can be used to reduce risk, and to hedge against unwanted exposure to certain market fluctuations. Used this way we can see uses for Shariah-compliant derivatives not for speculation, but rather to reduce risk (volatility) and to increase certainty in Islamic investment portfolios.
As the institutional investor base in sukuk continues to grow, we now have clients in various jurisdictions with varying currencies. Given the global volatility in FX rates, we are seeing an increased interest in using Shariah-compliant currency futures to minimize the risk, or uncertainty, caused by currency movements.”
Speaking to Ramlie, it does not feel that military and marriage are the only avenues by which he has learned to become more outspoken. Each experience provided a life lesson and built his character, and in this evolution, his career blossomed. When the formidable Datuk Noripah Kamso, former CEO of CIMB-Principal Islamic, met Ramlie, then Head of Global Services of the Societe Generale’s derivatives trading division in Singapore, she was impressed by his knowledge, fervour and demeanour. So much so that she invited Ramlie to be Head of Institutional Sales of CIMB Futures, reporting directly to her, who was then the CEO of CIMB Futures. On his first day of reporting for work, Datuk Noripah announced that with her move to another part of CIMB Group, Ramlie would be heading CIMB Futures as the new CEO.
Moving to Malaysia appears strange given Singapore’s global presence and Ramlie’s global perspective and ambition. His career history is a testament to this. “I was brought in to release CIMB Futures from its time capsule and to build the derivatives broking platform to international standards. The business was too domestic-focused. In Singapore, I was dealing with over 3,000 listed derivatives products; in Kuala Lumpur, I was only effectively able to offer three products: the KLCI (KL Composite Index) Futures, the KLIBOR (KL Inter-bank Offered Rate) Futures and the CPO (Crude Palm Oil) Futures.”
Q2: Which equity sectors are showing the best returns in the Malaysian market and among your portfolios? Conversely, which sectors are showing the worst?
Oil & Gas and Utilities, mainly Tenaga National Berhad (TNB), has been the best contribution to our Malaysian portfolios. Specifically for TNB, they have received approval from the Cabinet for a 15% tariff hike effective 1 Jan 2014. The base tariff hike and adjustments for liquefied natural gas (LNG) are earnings-positive for TNB. In the broader oil & gas space, robust contract flow is slated to continue with new developments like marginal fields, enhanced oil recovery projects and new gas developments. We also expect significant job creation to emerge for downstream oil & gas from Petronas’ Refinery And Petrochemicals Integrated Development (RAPID) project. On the other hand, Consumer Services and Consumer Goods have been a negative drag on portfolio returns. In the 2014 Malaysian Budget, the Government had announced the implementation of the Goods and Services Tax (GST) in 2015 and this coupled with creeping inflationary pressures has been detrimental to the consumer.
Mr Ramlie Kamsari’s Management Style
- Open Door Policy: “Employees can speak to me on any matters or concerns. I am approachable and welcome any feedback, suggestions and ideas. I strongly believe in the value of having the diversity of ideas from across all levels in the organization.”
- Empathy: “I am blessed to be where I am today. I started my career from the rank and file and I can therefore empathize with the team when faced with difficult challenges. I try to put myself in their position and give them motivational pep talks to encourage them to push further. My mentor once said that there are many good leaders but a leader that can also show empathy and compassion stands apart.”
- Solidarity: “A team is only as strong as its weakest link. I am glad there is strong camaraderie within the team. The team dynamics are good and we seemed to complement our respective strengths to form one solid unit. I see my role as therefore to enable the team better so that each member can realize their fullest potential.”
- Interest and support: “Oftentimes, bosses can be too detached and isolated. Employees want them to show and take interests in what they do. I engage my team actively in any given day, ranging from serious business matters to innocuous small talks. It gives me a good pulse of the team and I can support them better knowing intimately the challenges that they face.”
- Sourcing opinions: “I am very analytical and meticulous by character. When making decisions, I like to engage my team for opinions and exhaust all views where possible. I pick their brains and try to involve them in the decision-making process. I will ultimately decide of course, but I sincerely value the diversity of views from the different people in the team. I feel this also gives them collective ownership to the decisions made.”
- Humility: “Bosses are not always right. A solid team is like an orchestra and I am simply the conductor. I am not an expert of every aspects of the business; that is why I have leaders and specialists to aid and support me. I empower them and they exercise the autonomy to the best interests of the organization. I might give my viewpoints at times, but I trust and have confidence in their ability and judgement.”
- Communal Spirit: “At a recent team-building retreat, I thanked the spouses and partners of my team. I made the effort to know their names (and the children’s names and their birthdays) and wanted to give recognition for their support and understanding. This is not prescriptive for me. I do it as a matter of course and because I take a genuine interest in the well-being of my team. My team knows that I care for them, and I feel this makes them want to work harder and go the extra mile in pursuit of our shared goals.”
- Hard work: “Passion and discipline drives me forward. I clock on average 12 hours daily for a typical work day (and sometimes the odd weekend when I travel for business). I am a ‘hands-on CEO’ and I am fortunate to have a team that shares my passion and strong work ethics. That aside, I also feel it is extremely important to fulfill the amanah or responsibility that has been entrusted to me to the best of my ability.”
CIMB Group is a network of several business entities creating a regional financial house. Its focus has been on Malaysia, but in the last two decades, it has looked beyond the peninsula. To grow, it has aggressively broadened its services and offerings across several markets. Ramlie was a perfect hire to help the organization achieve global expansion. Since joining in 2004, he has been tasked to build four different businesses: Derivatives Broking, (CIMB Futures, 2004 – 2006), Islamic Equity & Derivatives (CIMB Islamic Bank, 2006 – 2008), Insurance, Takaful and Risk Advisory (CIMB Insurance Brokers, 2008 – 2012), and now Global Islamic Asset Management (CIMB-Principal Islamic Asset Management, 2012 – present). “I am considered as a start-up and turnaround expert, and have built a solid track record of building businesses. I really have to thank CIMB Group for the opportunity and confidence. Each time, it felt like a baptism of fire, but I relished the challenge of learning new areas and bringing the businesses to the next levels.”
This thinking served him well when he joined CIMB Islamic Bank in 2006. Although he had a low knowledge of Islamic banking services at the time, he saw the global potential of the industry. In the same year, the Malaysia International Islamic Financial Centre was set up to promote and strengthen the Islamic finance market space. There was strong government support especially with the issuance of the Ninth Malaysia Plan, covering the period of 2006 to 2010, which sought to position Malaysia as a global hub for Islamic capital market products and services, and in particular, as a centre for origination, distribution, trading, fund, and wealth management. Ramlie saw a global potential, but he had to learn about Islamic finance quickly given the speed by which the industry was progressing.
Q3. We would like you to play clairvoyant now. What do you think the Islamic finance landscape will look like in 10 years time? Do you think it can, in any country, outgrow the conventional industry?
We expect there to be tremendous growth in Islamic finance over the next 10 years. Not to say Islamic finance is limited to Muslim investors, but if you do just look at the demographics of Muslims globally, they are clearly supportive of significant growth in Islamic finance. This is based both on population growth as well as increases in per capita income in various Islamic countries and regions.
For example, the region of the world with the largest Muslim population is right here in Asia-Pacific. Nearly a billion of the world’s 1.9 billion Muslims resides in the Asia-Pacific, in Emerging Markets (EM) such as Malaysia and Indonesia, where per capita income has been climbing for a number of years. So, it is not just the size and growth of the Muslim population, it is also the growing wealth of that population that is creating a massive demand for Islamic finance products. The reality is the global Islamic fund industry with asset under management (AUM) of around USD 60 billion, is still in its infancy compared to the conventional fund industry which has AUM of nearly USD 22 trillion. Given the mature stage of the global conventional financial markets, while Islamic finance may not outgrow conventional absolutely, we believe the rate of growth will significantly outpace the conventional industry in multiple regions over the next decade.
CIMB Islamic Bank had started in 2003 as a small, boutique Islamic investment bank. After two years, it sought to expand its Islamic investment banking capabilities. In 2005, it merged with Commerce Tijari Bank, and in 2006, it acquired the Islamic banking business of Southern Bank. Ramlie was brought in to establish and build capacity for the Islamic equity and derivatives markets. “I worked actively on a task force with Securities Commission and Bursa Malaysia to formulate and implement an Islamic stock-broking framework. There were some discussions about derivatives, but the primary focus was mainly on equity-based products. At the time, to increase the knowledge of Islamic finance, Bursa Malaysia and several local institutions, including CIMB Group, had introduced and implemented various investor education and awareness programmes to educate the retail investors in particular.”
However, after two successful years, CIMB Group offered Ramlie another role. CIMB Group had acquired Affin Insurance Brokers to facilitate its entry into the insurance, takaful and risk advisory business. Ramlie was appointed to the helm as CEO of the rebranded entity, CIMB Insurance Brokers. He worked on the acquisition and the subsequent integration of the new business into the CIMB Group. “Again, I had to challenge and push myself as I knew little to nothing about insurance. I had to learn things fast, as well as build a solid team to position the company as the premier insurance and risk advisers to major Malaysian institutions and corporates. I brought many new people ranging from risks and claims specialists from market leaders such as Marsh and Aon, but their entry brought in a different work culture compared to Affin, for instance. At some point, the different teams evidently went into a collision course, and being the flag-bearer for CIMB Group, I had to intervene and direct the team to adopt one uniform ‘CIMB standards’ for the way forward.”
Part of the problem confronting Ramlie was the typical American work culture that placed a pre-eminent position to earning profits for short-term gains. Sometimes this would occasion transactions which were suspect at best. For Ramlie, success did not mean entertaining transactions which, while lucrative, might push the boundaries of acceptability and ethical standards to dubious level. “We walked away from a number of transactions. There is inherent pressure within the industry to partake in such practices in order to compete, but I was brought in to ensure we worked on deals that are in tacit compliance to local regulations and the robust ‘CIMB standards. Indeed, I did not want CIMB Group to fall into disrepute. That was the vision I had to sell to my team from the start.”
Post-acquisition, the insurance outfit was doing rather well, registering record profits every year since he took over as CEO. However, the focus was clearly domestic. Ramlie was yearning to branch out beyond the shores of the Malaysian peninsula. And so it came to pass that at the back end of 2011, CIMB Group yet again offered him a new challenge vide CIMB-Principal Islamic, the global Islamic asset management platform that offers Islamic investment solutions to global institutional investors and sub-advisory services to collective investment trust funds. CIMB-Principal Islamic is a joint venture between CIMB Group and Principal Global Investors based in the US, and after a rigorous selection process by the two shareholders, Ramlie passed with flying colors and was appointed as the Deputy CEO and Head of Global Sales & Marketing in January 2012.
Q4.What are your predictions for the sukuk and equity market in Malaysia and the Far East region over the coming year?
MYR and Regional Sukuk
In Malaysia we saw a sizable increase in yields for Malaysian government securities (MGS), and although corporate spreads tightened some, overall yield for corporates rose in 2013 as well. For 2014, the market is expecting spread widening for corporates, and either somewhat of a stabilization or moderate increase in MGS yields. Potential issuers share those expectations and have been testing the market for issuing, but institutional investors are staying sidelined. Because of this, for the 1H 2014, we expect issuance to be slow. However, once sentiment has improved and the upward move in yields has stabilized, we expect the pipeline to pick up significantly in 2H 2014, driven by significant capital needs for capital expenditure and infrastructure and debt refinancing from both the private and public sectors.
USD Global Sukuk
Global rates have risen aggressively following the US Fed’s announcement in May 2013 of its intention to start winding down QE3. As a global fixed-income product, USD sukuk had a challenging year in 2013 where yields were low and spreads were quite thin in the early part of the year and then widened considerably with a commensurate negative effect on prices. At this point, there has been a re-pricing, and a significant spread has returned to USD global sukuk, so investors looking for yield are allocating portfolio capital to this asset class. We see that being a continuing theme over the next twelve months.
We also expect a steady stream of issuance from our Malaysian and Gulf Cooperation Council (GCC) sukuk markets. Issuance will be related to the infrastructure needs of the growing economies and issuers will be looking to tap the liquidity that is available in the global USD sukuk capital market.
Equity
As for the equity markets in Malaysia and the region, we expect continued volatility as the market adjusts to the expectation of a further wind down of the QE3. This “tapering” which will ultimately be the discontinuation of QE3 will continue to put pressure on Emerging Market equities. However, at the same time, we see signs of synchronized global growth. Certainly we have seen growth pick up in the United States, and in the United Kingdom. Certain European countries (EU) countries are growing, and in total we expect the EU to at least not be a negative contributor to global growth in 2014 which is an improvement. China has stabilized its growth for now as well. So, while there is downward pressure from the taper which is causing a reversal of EM fund flows, we see global growth benefitting Malaysia and other export countries in Asia. In Malaysia, where exports account for over 80% of GDP, a return to global growth is a great lift, and we saw that in the third quarter of 2013 in both the outperformance of exports as well as the improvement in the current account surplus. Compared to three months ago, we see the momentum in downgrades is slowing as well, and the long-awaited earnings upgrade may finally happen sometime this year. Right now we maintain a December 2014 target of 1920 based on 15 x 2015 earnings.
When Ramlie joined CIMB-Principal Islamic, it was a relatively small team that had in the four years since incorporation in 2008 raised USD 1 billion. In the year that followed, CIMB-Principal Islamic raised another USD 1 billion, a quite an outstanding feat amidst a challenging operating environment in 2013. Ramlie introduced a clear and robust structure within CIMB-Principal Islamic by bringing in more investment professionals, including portfolio managers and credit analysts for future capacity building. If his predecessor Datuk Noripah had built industry recognition, creating and strengthening relationships with industry partners, regulators and government bodies; Ramlie shifted focus towards strengthening client engagement and relationship management, developing a global outreach through effective partnerships; and also institutionalizing work processes and governances.
Client focus did not only mean generating good returns. “Clients want sustainable results over a time horizon. They also demand full adherence to investment guidelines and have a zero-tolerance policy on non-compliance issues. They therefore expect and want certainty and confidence that the fund managers have the capabilities and the basic tools to deliver on those expectations. We thus ensured that the team was equipped with the requisite expertise and skill sets, and in particular, the portfolio managers were enabled with the right analytical tools needed to spot the right investments and deliver superior returns. Additionally for us, maintaining best-in-class standards and international best practices across the business, covering legal, compliance, risk management and Shariah governance for example, were clearly imperative.”
Coupled with client-centric activities, CIMB-Principal Islamic stepped up efforts on the international front. Two ground-breaking transactions were the Al-Hilal Global Sukuk Fund (CIMB-Principal Islamic acted as Investment Advisor) and three Undertakings for Collective Investment in Transferable Securities (UCITS) Equity funds launched in March 2012. “These funds gave us a global access point as well as a shop window to showcase our capability internationally. For the UCITS funds domiciled in Dublin, Ireland, investment research organizations such as Morningstar and Lipper, can provide the funds better visibility through tracking of the fund’s performance over a time period. If the track record is good, institutions will then be attracted to invest in the funds directly or through discretionary mandates, having seen CIMB-Principal Islamic’s capability from the fund’s performance.”
Q.5 Where are most of your clients based? What is the ratio of individual and institutional clients? Also, what is the growth strategy?
Being Malaysia based, it is almost given that a large portion of our client is based in Malaysia. However we have seen a steady and growing list of clients originating from the GCC. Given that these two geographic locations consist vast Muslim populations, it makes business sense to build a strong foothold in these “low-hanging fruits” whilst concurrently exploring the west and making ourselves known to them.
Being established in 2008 under the Malaysian Islamic Financial Centre, it has always been our strategy to focus on the Institutional space. The UCITS which is predominantly a retail instrument is a strategic initiative to provide visibility for manager searches globally. We partner with institutions globally to distribute the funds, and as such from our perspective, remains as institutionally focused albeit from a different perspective. The UCITS funds remain an important long-term strategy for us to expand beyond our familiar markets.
Building interest in the UCIT Islamic funds has been challenging at best. CIMB-Principal Islamic had undertaken to build reach and distribution in a number of different ways. Target investors included global institutions, large corporates, private banks, as well as family offices. At the time of the launch of the funds, Bahrain was identified as one of the key markets, but with the outbreak of political instability, demand has been marginal there. Focus has now been shifted towards other burgeoning markets in the GCC such as United Arab Emirates and Saudi Arabia.
Another country of interest was Germany. “We spent 18 months trying to gain traction in the German Turkish community. It is a unique community, comprising of six million Muslims. The young professionals are growing in strength. They have a growing household income and high saving rates, and are looking for Shariah-compliant investment homes. We engaged several indigenous Turkish banks in Germany for the retail distribution and also collaborated with marketing agents to interact with Muslim associations, community centres and local mosques. Unfortunately, sales traction has been slow. Hence, we have scaled down our activities for Germany for the time being.”
Q6. Please explain the UCITS funds launched in 2012
“The launch was subsequent to the establishment of CIMB-Principal Islamic Asset Management (Ireland) Plc, the first Malaysian-based international Islamic funds platform domiciled in Dublin, Ireland. In this platform, three new Islamic UCITS Equity Funds were registered – Islamic Global Emerging Markets Equity Funds, Islamic Asia Pacific ex-Japan Equity Funds and Islamic ASEAN Equity Funds. These Islamic UCITS Funds will be registered and offered to investors in seven jurisdictions – the United Kingdom, Switzerland, Saudi Arabia, Bahrain, Qatar and Singapore. These Islamic UCITS Equity Funds were identified and offered to international investors based on market research which revealed the growing investor demand for these investment strategies to meet their investment appetite in tapping the economic growth stories of these regions. These strategies are also currently not widely available on a UCITS fund platform. CIMB-Principal Islamic is the investment manager of these Dublin-based UCITS.
In essence, an UCITS-compliant fund is regarded as a “European Passport” whereby if they are authorized in one EU member state, they can be sold in any other EU member state without the need for additional authorization. UCITS are highly regulated and as such are well regarded globally, with robust risk management procedures and a strong emphasis on investor protection. As a result, UCITS standards are recognized beyond the EU.
The idea of establishing a global fund platform is conceived as an initiative to overcome the challenge to bring international and institutional monies into Malaysia for its transformation into an international hub for Islamic finance. With this new Islamic fund range in Ireland, institutional and retail investors globally will be able to see CIMB-Principal Islamic’s asset management track record. If the funds do well, not only will this attract investment into those funds, but institutional investors may also appoint CIMB-Principal Islamic to manage their discretionary mandates. Having the funds registered in Ireland demonstrates that the Malaysian asset management regulatory framework is of world-class standards. To have registered the funds as UCITS compliant means that the Central Bank of Ireland is convinced that the home regulator for CIMB-Principal Islamic, the Securities Commission is on par with that in Europe.
The Company also collaborates with multi-national Shariah advisors from Malaysia, Saudi Arabia, Bahrain and Canada. It employs Global Investment Performance Standards (GIPs) to ensure fair representation and full disclosure of investment performance results.”
In creating a global outreach, Ramlie has to travel extensively – establishing relationships with regulators, institutions and other industry players; and speaking in conferences and seminars to inculcate better awareness of Islamic asset management; in different parts of the world. In doing so, CIMB-Principal Islamic acts as a pseudo-ambassador for the Malaysian Islamic financial services industry. If CIMB-Principal Islamic is successful then there is a trickle-down for the domestic industry in terms of profile and global respect. If Malaysia tended to be more insular previously, its success and promotion of Islamic finance are opening international doors. “Our maxim is that we can only be successful if others are also successful. Making the industry stronger takes so many people working together. For instance, we have a good relationship with the Malaysia International Islamic Financial Centre (MIFC), which benefits us and them, and also the wider industry.”
Ramlie accepts that the success of CIMB-Principal Islamic cannot be narrowed down solely to the team. CIMB-Principal Islamic works closely with several partners within the two shareholders, particularly CIMB-Principal and Principal Global Investors. “We are a lean but mean team, and we are trying to conquer the world. We, therefore, have to rely on our partners who have the specific expertise and requisite experience to give us the support and assistance needed, especially in understanding the vagaries and dynamics of the various markets in Europe, Asia and the GCC. Thus, working in close tandem with these partners, and having shared goals and objectives, gives us the competitive edge to capitalize on the opportunities across the different markets.”
“Our business model leverages on the shared services of our shareholders globally. With existing resources across CIMB Group and Principal Financial Group, it does not make sense to duplicate certain functions in the business, and thereby increase our overhead costs unnecessarily. We will continue to actively tap on the unique expertise and collective strengths of the shareholders to be ahead of the curve. Also, with continued support and commitment from the shareholders in this growing and exciting space, we are confident of providing a complete Islamic solution while consistently delivering value to our clients.”
Ramlie hopes that 2014 will be the year where CIMB-Principal Islamic fortifies its stature as a market leader in Islamic asset management. In particular, he strives to further strengthen its existing capabilities in Islamic Equity and Global Sukuk, and potentially add a new capability in Islamic Global REITS. He hopes to raise another USD 1 billion in assets globally, break into new markets and continue to build global scale and outreach. “I have set a challenge to my team to become the ‘Islamic Pimco’ for Global Sukuk. (Pimco, a unit of Allianz Asset Management, is the fund manager of the world’s largest Fixed Income fund). For that, our focus should be building capacity, establishing a GCC presence, investing in high quality and well-performing assets and meeting each client’s specific needs and unique requirements.”
I am intrigued at the last point. If returns are good, then a company would have met the client’s needs? “Investment performance is always a key determinant, but every fund manager is expected to deliver that. What is then the differentiator? It has to be the human element and the personal touch. We take time to engage the client, meeting them regularly, organizing activities such as iftar gatherings to get to know them better outside the business setting. I have imbued in my team the importance of strengthening relationships with our clients across all levels. It builds trusts and generates more confidence, paving the way towards a stronger partnership between us and the clients. And that’s the way it should be, that we are both partners working towards a common objective.”
Building human relationships are important for Ramlie both in the team and with the clients. This gives CIMB-Principal Islamic a more personable quality. It has been 20 years since Ramlie joined Barings, and he has come a long way. His experiences working across different countries and cultures, and dealing with different people with unique skills and approaches have factored in his own ways of working. He is very much a people’s person as he enjoys their company and learning from their experiences too.
“CIMB-Principal Islamic is a keen supporter of the INCEIF internship programme. We have hosted many interns over time, and recently we had an intern from Saudi Arabia named Muhammad Asad. On his last day with us, he timidly approached my door to announce his departure. I invited him in for a chat and we ended up having quite an engaging session. To me, inspiring interns such Asad does not take much, but the effort certainly goes a long way. I strongly believe sharing my own experiences with them can positively inspire them, push them forward and encourage them to give their best. They are, at the end of the day, potential new leaders and the next engine of growth for the industry. In my own little way, I hope I have given them the inspiration and confidence to meet challenges with the tenacity and grit of determination that I had.”
By the end of the interview, I was certainly not overwhelmed and was taken by his warm and down-to-earth demeanor. Ramlie does not want you to be intimidated by his presence. Rather, he hopes that you will be inspired by his dedication, attitude and approach. I must say I certainly was.
Q7: Allow me to give you examples of three men: one is a retired high net-worth individual, the second is a middle age doctor with a family and lastly is a teacher living a single life. If you could advise each individual about potential investment opportunities, what would your advice be?
The basic tenets of Managing Wealth & Retirement Planning remain, even if you are already retired. The availability of excess Disposable Income, or in one of the cases, Disposable Savings, is important in deciding an appropriate allocation. People always talk about how much gains you are looking at. I tend to look at how much loss can one tolerate instead. Can that person tolerate foregoing their lifestyle of the “rich & famous” to a “middle income” earner?
There’s no simple answer that fits all age demographics. It is unique to each individual. My advice is to consult your designated wealth advisor to develop a custom plan that suits your needs and financial goals in life.
That is in fact a challenge in Asia, primarily in the lower and middle-income brackets. They do not see the benefit of engaging a professionally qualified wealth advisor to discuss wealth and retirement planning and see it as a waste of money. Instead, it should be seen as an investment for their long-term gain. Asians in general are punters and short-term investors. Hence the stock market is their playground. Long-term investments remain a challenge for them to accept. The people need to be educated of its importance and it requires the support of not only private companies but also the government to initiate and encourage this change of mindset.
