Why takaful companies’ liquidity could prove a boon

Malaysia’s Islamic insurers’ traditional focus on maintaining liquidity could help position them for equity investing opportunities – once the country emerges from the current torrid time for its financial markets. Takaful companies, as they are locally known, are required to allocate to shariah-compliant assets. However, the investible universe of these assets is small by nature, therefore limiting the companies' ability to diversify. This constraint, combined with a generally mo…