Shushmeet Trikha
Tell us about your role and your team.
My primary focus is developing the private and priority banking business – Wajaha and Aayan segments, respectively – for Dubai Islamic Bank in the UAE. My team includes Products & Investment specialists, investment councillors, Investment Strategy and Middle Office. We also support coverage teams across the UAE.
How many fund houses do you work with and how many funds are on your product shelf?
Several global fund houses that are best-in-class in terms of specific asset classes as well as sharia structures are our partners in providing our clients with a complete suite of product offerings. They are global, regional and emerging players in the investment industry that provide access to our clients to a complete suite of Shariah-compliant product offerings.
What new strategies have you selected this year?
Given the high inflation numbers and rising interest rates, the markets have corrected significantly, both on bonds and equities – specifically replicating market events of the 70s and 80s. As a result, the past year has been challenging, and to ensure customer portfolio safety we have been focusing more on consolidation of clients’ portfolios and looking at alternative strategies such as private credit offerings, which are insulated to rate movements and preservation of cash and cash equivalents.
What gaps are you looking to close in 2023? Are any of your products at risk of being removed, if so in which area?
The year ahead will see different cycles of volatility in addition to sticky inflation. The probability of high interest rates continues and there will be opportunities in the market to buy high investment grade fund offerings with relatively cheap valuations in the short term.
Which sectors have been most popular with your clients this year?
Shariah-compliant ETFs, multi-asset and private markets (private debt and equity) solutions are offering new product opportunities for clients, especially in the Islamic space.
Investment funds offering blue chip and defensive names will remain attractive. Technology funds, specifically in the area of cybersecurity, hardware (semiconductors, electric vehicles, EV charging technologies), healthcare funds, and ESG offerings remain attractive investments.
In terms of geographies, we still remain cautious on Europe and China. India is in a good spot as demand remains resilient post-Covid and the economy will continue to do well. GCC markets are poised to do well, providing strong product offerings in terms of equity IPOs and new issuances. GCC-focused funds will be a good investment play.
Are Shariah-compliant funds meeting your expectations and what can asset managers do to meet the demand for Shariah-compliant products?
Sharia-compliant funds have fared better compared to conventional offerings and are poised to continue being a good investment option due low or no debt exposure to the investment underlyings. The depth and breadth of Sharia-compliant product offerings have so far been superficial. However, given the increasing demand from the markets, we see many international fund houses trying to develop products to cater to the requirement of the Islamic institutions.
Sum up your investment philosophy in a few words.
Our investment philosophy revolves around providing consistent returns to our clients on their investment portfolios via global, regional and local play with enhanced risk management.
From your perspective what are the most important traits in a manager?
Effective and consistent risk management process; producing consistent returns in most market environments; disciplined portfolio construction techniques.
What is your biggest concern in the current market situation?
Continued high and sticky inflation data. And the possibility of high interest rates if inflation remains persistent.
What is the most useful career tip you have gotten?
The quote is one of the best career advices I have read and would like to share it. ‘If you want to succeed you should strike out on new paths rather than travel the worn paths of accepted success’ – John D Rockefeller
Who are you supporting at the World Cup?
I would like to see Argentina taking this World Cup as a fitting adieu to the star Lionel Messi on his last football World Cup endeavour.