Aberdeen Islamic Asset Management, the Islamic finance arm of UK-based Aberdeen Asset Management, has launched two shariah funds for the Malaysian market.

The Aberdeen Islamic Malaysia Equity fund and Aberdeen Islamic World Equity fund are the company's first shariah retail products in the country. The Malaysia Equity fund will be managed from Kuala Lumpur, while the World fund, which will have no immediate exposure to Malaysia at all, will be run from Edinburgh.

The funds will be available for purchase via distributors Phillip Mutual Berhad and iFAST Capital and will require minimum subscriptions of MYR1000 ($329) for retail investors and MYR5 million ($1.6 million) for institutional buyers. A fixed price of MYR1 per unit is set until 6 February, when trading starts.

"Malaysia has been a core market for us in the region and it has worked hard to develop a viable market for Islamic investments," said Hugh Young, managing director of Singapore-based Aberdeen Asset Management Asia, which oversees the companies regional operations.

Aberdeen Asset Management has been investing client money in Malaysia for over 25 years and lists MYR13 billion in equities under management.