85 / 246
83
BANKING & FINANCE
Responsible for more than 10 per cent of the
world’s assets, the American-based financial
services company tapped into the Bruneian
market in 2011, its third office in the Southeast
Asian region after Singapore and Malaysia to
solidify its presence in the Asia-Pacific market.
In February 2019, State Street opened their new
office at the Pavo Point building in the capital.
The company’s physical presence in Brunei
illustrates its dedication in entering the
local market and meeting its clients’ needs.
The office offers State Street’s full range of
financial services to corporate clients such
as investment servicing; investment research
and trading; investment management; and
support for clients through client servicing
and relationship management. Additionally,
State Street acts as a gateway for
international fund managers interested in
Brunei for investment opportunities.
Apart from investment services, State Street is
also committed to Brunei’s financial development.
In 2016, State Street signed a memorandum
of understanding (MoU) with Universiti Brunei
Darussalam (UBD) to boost financial literacy
among local students, signifying a collaborative
partnership in various programmes such as
competitions, talks and internship opportunities.
UOB Asset Management
Headquartered in Singapore, UOB Asset
Management (UOBAM) established its Brunei
subsidiary called UOBAM Brunei in 2007.
UOBAM Brunei offers a range of investment
solutions including unit trust products across
asset classes and geographies to meet different
investment needs and goals.
In March 2018, UOBAM launched the award-
winning United SGD Fund for retail and
institutional investors in Brunei seeking
regular returns. The United SGD Fund invests
in investment grade bonds with different
maturity dates across a three-year timeframe.
This smoothens out the impact of fluctuating
interest rates. The United SGD fund is a
recognised Collective Investment Scheme by the
country’s financial regulator Autoriti Monetari
Brunei Darussalam (AMBD). Retail investors
can approach Baiduri Capital, the appointed
distributor of the fund.
Local Investment Services
In May 2017, the Brunei Darussalam Capital
Market Association (BCMA) was launched.
The members are made up of capital market,
finance and investment product and service
providers licensed to conduct capital market
activities in Brunei. The BCMA’s objectives
include supporting capital growth and market
integrity in Brunei and to promote financial and
investment literacy.
Through AMBD, the Brunei government has been
issuing short-term Sukuk Al-Ijarah. Sukuk are
Syariah-compliant financial products that create
returns similar to fixed-income instruments, like
bonds. However, unlike bonds, Sukuk does not
collect interest. This explains Sukuk’s growing
popularity not just in economies with Islamic
Banking, but also in the global market.
The government has issued over BND13.34 billion
worth of short-term Sukuk Al-Ijarah securities
since the maiden offering on April 6, 2006. The
total holdings of the Brunei government Sukuk
outstanding as at December 5, 2019 stood at
BND322 million.