Brief Profile of Managing Director:

With nearly 30 years of investment experience, Mrs. Junita Ishak is the accomplished Managing Director of OUD Asset Management. Her career began at Permodalan Nasional Berhad (PNB) as a portfolio manager, specializing in international equities. Later, she held few senior positions; the Chief Investment Officer at Bank Islam Brunei Darussalam (BIBD), Executive Director of RHB Islamic Asset Management (RHB) and Head of Islamic Institutional Business at RHB Islamic International Asset Management (RHB). In 2015, Mrs. Ishak founded OUD Asset Management, leveraging her expertise to establish the company as a reputable player in the industry. Her leadership and strategic direction have been instrumental in the firm’s growth and success.

In conversation with the Managing Director:

1. With over 27 years of investment experience, how has your expertise contributed to the growth and success of OUD Asset Management since its founding in 2015?

Mrs Junita Ishak: My expertise, honed over 27 years of investment experience, has been instrumental in the growth and success of OUD Asset Management since its founding in 2015. As the founder and Managing Director, I am not only responsible for the overall strategic direction of the firm, I am also involved directly in managing investment for clients.

My previous role as a global portfolio manager at PNB, instilled in me a solid fundamental approach to equity investing with long-term perspective and tactical asset allocation. Years working with bank-backed asset management firms further provided me the valuable insights into successful marketing executions, strategic collaborations, and effective product structuring process. All these have largely been the guiding principles in formulating the investment framework at OUD Asset Management.
In addition, the network built throughout the years with industry professionals, including fund managers, clients, banks, and brokers was invaluable in staying abreast of industry trends and navigating the challenges faced by OUD Asset Management.

Leveraging on my extensive investment experience and industry insights, the decision to set up OUD Asset Management to undertake the boutique fund management activities in Malaysia is a strategic and deliberate step to manage finite assets up to RM750million with a clientele of not more than 50 sophisticated investors. This is a key success factor as we want to position OUD Asset Management as a trusted partner to our investors within this competitive landscape of Malaysian fund management industry. 

2. As the Managing Director of OUD Asset Management, how do you ensure that the Company exceeds the expectations of its sophisticated investors?

Mrs Junita Ishak: In ensuring that we consistently exceed the expectations of our sophisticated investors, we develop a personalized approach to investment for our investors by understanding closely their specific investment goals, preferences and uniqueness, offering a level of attention and customization that sets us apart from other institutions.

One of the key ways we ensure investor satisfaction is through close collaboration and active communication. We prioritize building strong relationships with our investors, taking the time to truly understand their needs, preferences, and risk appetite. We seek to provide timely updates, performance analysis, and address any concerns that may arise. This open dialogue allows us to manage expectations effectively and ensure that our investors feel valued, heard, and understood throughout their investment journey.

Additionally, we closely track the performance of our investment strategies, regularly reviewing and refining our approach to adapt to changing market conditions. By doing so, we can identify areas for improvement and seize opportunities, especially during market downturns and volatile times. Our commitment to delivering consistent, strong performance helps to build trust and confidence with our investors. As we are limited with only 50 clients and fund size, we can devote better focus on our clients servicing and their investments.

3. Could you share some insights into OUD Asset Management’s investment strategy, which is guided by Shariah and ethical principles? How does it align with the company’s mission and vision?

Mrs Junita Ishak: Our investment strategy is guided by both Shariah and ethical principles, which are integral to our mission and vision. We invest only in companies that are Shariah compliant with sound fundamentals and prioritize companies with strong ethical values, carry out responsible business conduct and practices that have positive impact on society. By investing in these companies, we aim to create long-term value and contribute to the betterment of society. All these are well encapsulated in our Investment Process.

This investment strategy aligns perfectly with our company’s mission and vision. Our mission is to exceed the expectations of our investors, build sustainable investment performance, and bring innovation to Shariah compliant ethical investments. By integrating Shariah and ethical principles into our investment approach, we promote long-term performance sustainability by focusing on stable and sustainable industries, such as green energy, healthcare, clean technology, and socially responsible initiatives. These sectors not only offer potential financial returns but also contribute to a more sustainable and responsible future.

We believe in investing in this manner, we position ourselves better to deliver investment value beyond financial returns to our investors.

4. OUD Asset Management focuses on investing in companies that produce quality and sustainable businesses while making positive contributions to the community and business sustainability. How do you identify and evaluate such companies?

Mrs Junita Ishak: At OUD Asset Management, we have a rigorous process in place to identify and evaluate companies that produce quality and sustainable businesses while making positive contributions to the community and business sustainability. Our approach combines both quantitative and qualitative analysis to ensure a comprehensive assessment of potential investments.

Quantitative analysis forms the foundation of our evaluation process. We conduct in-depth fundamental analysis of financial statements, examining factors such as profitability, growth prospects, cash flow generation, and balance sheet strength. We analyse historical financial performance and trends to assess a company’s financial health and earnings quality. This analysis allows us to identify companies that have a solid foundation and the potential for long-term sustainability. We also place significant emphasis on qualitative factors when evaluating potential investments. We value companies that demonstrate resilience, adaptability, transparent management, and a commitment to continuous improvement in these areas.

As the primary fund manager and owner of the company, I personally bring a unique perspective to the evaluation process. Having a dual role provides distinct advantages in assessing the operations of high-quality and sustainable businesses. My extensive experience in the industry allows me to leverage insights and relationships built over the years to evaluate potential investments based on their alignment with our values and objectives.

5. Could you please elaborate on the innovative and winning ethical investment approach that OUD Asset Management adopts? How does it differentiate the company in the market?

Mrs Junita Ishak: At OUD Asset Management, our innovative and winning ethical investment approach sets us apart in the market. We strive to think outside the box and offer investment solutions that are not commonly available to investors in Malaysia. Our approach involves thorough analysis and a focus on compelling investment opportunities with unconventional strategies, strong growth potential, and value creation.

One of our innovative funds focuses on investing in fundamentally sound and ethically oriented companies within the technology, healthcare, and energy sectors. We prioritize companies with compelling stories that target tomorrow’s sectors with positive impact. While the fund currently consists primarily of local stocks due to its smaller size, we recognize the diversification benefits those international investments can offer and is expanding the geographic reach in the near future. 

We also offer two specialized healthcare funds with a single-sector focus that invested in target funds in UK. One fund is designed for long-term capital growth, while the other aims to generate income. Both funds concentrate on the specialist care market in the UK, where the demand for quality care services exceeds supply. These funds invest in businesses that have the potential to change the lives of some of the most vulnerable people while offering solid, uncorrelated, and truly alternative returns. The target capital growth fund has a solid track record of delivering over 200% returns over an eight-year period, while the income fund consistently provides returns above 7% per annum since its inception. We select international funds with a solid track record and established expertise in specific areas to ensure optimal investment opportunities for our clients.

As a boutique firm, we prioritize the interests of our investors and the quality of investments offerings over rushing product launches. We take the time to conduct thorough due diligence to ensure that all necessary criteria are met. This commitment to meticulousness and quality sets us apart from others in the industry. We believe in offering specialized and tailored investment solutions that truly meet the needs and expectations of our clients.

6. How does OUD Asset Management collaborate with market experts to bring innovative and winning offerings to its investors? Can you provide an example of a successful strategic collaboration?

Mrs Junita Ishak: We recognize the value of collaboration with market experts to present innovative and winning offerings to our investors. By leveraging the knowledge and expertise of these experts, we can access specialized insights and research that enhance our investment strategies and expand our product offerings.
One successful example of a strategic collaboration is our partnership with an independent financial advisory firm for the launch of our healthcare fund just before the COVID-19 lockdown in March 2020. Despite the challenging circumstances, this collaboration enabled us to source clients and facilitate smooth investments during the Movement Control Order. The fund has since demonstrated strong growth in investment size and performance, expanded our client base, and diversified our offerings. This successful partnership not only showcased our agility and nimble execution but also demonstrated the value of collaborating with market experts during uncertain times.

Through our healthcare funds, we have brought impact investments that create real change for some of society’s most vulnerable individuals. The Target fund that we invested in has a long and demonstrable track record of creating value through mergers and acquisitions in the health and specialised care space. By partnering with these experts, we gain access to their specialized knowledge and research of the industry. This collaboration has enriched our investment approach and allowed us to identify unique opportunities that align with our mission and values.

As we move forward, we remain committed to seeking new opportunities for our investors who want exposure to unique and rewarding investments. We believe that by working together with others in the industry, we can achieve more than we can on our own. We are always open to new ideas and partnerships that can further enhance our offerings and bring innovative investment solutions to our valued investors.

7. How do you envision OUD Asset Management’s progress and growth as a company in the next 5 years?

Mrs Junita Ishak: As we celebrate our 8th anniversary in September 2023, I envision OUD Asset Management continuing to establish its meaningful presence in the industry over the next five years. While we may be relatively new compared to other players, we have already achieved significant milestones during our journey.
Looking ahead, our focus will be on strengthening our position among high net-worth investors and agencies that seek to diversify into the alternative Shariah investment space. We aim to become a trusted partner for these investors, providing them with innovative and tailored investment solutions that align with their values and financial goals. Our goal is not merely to become a large company, but rather to have our presence felt and recognized for our expertise and unique offerings.

In the next five years, I anticipate further growth in our assets under management as we continue to attract sophisticated individuals, family offices and agencies who appreciate our specialized approach and track record of delivering strong performance. We look forward to exceeding their expectations, building sustainable investment performance, and bringing innovation to Shariah compliant ethical investments to their doors.