Falcon Private Bank is planning to launch a fund early next month that will invest in global sukuk.The fund will be offered to the bank’s clients and could grow to $500 million, according to Zafar Khan, Falcon’s Mena chief executive. There is alreade substantial demand from the bank's clients for global sukuk investments, he added. He also considers the yields of the past two years dislocated and the current yields more realistic to the underlying risk.
Safa Investment Services received this week its official certification for Shari'a compliance from Shariyah Review Bureau. It makes Safa Investment Services the first Islamic global asset management business in the world. Safa permits customers to benefit from global asset diversification of their managed accounts, but with a complete respect for the principles of Islamic law. This includes not only selecting securities that meet global regulatory standards, but also the process to manage accounts and the contracts under which they are managed.
Finanzkrise, Bankenkrise, Eurokrise – und kein Ende. In den drei monotheistischen Religionen gibt es ziemlich präzise Vorstellungen über den Umgang mit Geld und Schulden. Bieten sie uns Lösungsansätze für die heutigen Probleme?
Dienstag, 5. März 2013, 20 Uhr, IGB Leimenstr. 24, 4051 Basel
Michael Gassner: Geld und Ethik im Islam
„Jüdische“ oder „christliche“ Banken gibt es nicht, wohl aber islamische, deren Geschäftstätigkeit sich nach dem islamischen Religionsgesetz, der Schari‘a, richtet. Der zweite Vortrag in der Reihe „Geld & Ethik“ beschäftigt sich mit den Regeln des Geldwesens im Islam und deren Anwendung im modernen islamischen Bankwesen. Michael Gassner ist muslimischer Bankfachmann und entwickelt islamische Finanzprodukte für eine Schweizer Privatbank.
The Institute of International Finance (IIF) warns that rich-country central banks may end their stimulus measures for emerging markets and warned investors to be prepared. Although there are few indications that the world's central banks are about to change course soon, the risk for reversal of rates needs to be discussed in order to avoid a “boom-bust cycle”.
Heads of state and businessmen meet in Davos at the World Economic Forum (WEF) on Wednesday 23/01/2013, where attention will be focused on economic reforms following the Arab Spring. This year’s theme will be resilient dynamism and how to deal with changing contexts and sudden shocks. The Davos meeting will also include a separate session on Syria to discuss the country’s prospects this year.
Saudi Arabian financial services company Sidra Capital (Sidra) and Swiss alternative investment house INOKS Capital SA (INOKS) made an announcement about investments in various transactions by its jointly managed Sidra Ancile Global Structured Trade Finance Fund (STFIF). The joint facility totals $13.5 million. STFIF is regulated both by Saudi Arabia Capital Market Authority (CMA) and the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg. The fund has given approval to a number of investments in various transactions since the closure of its first offering of subscription in September 2012.
Despite the worldwide domination of a few credit rating agencies, two not-for-profit rating providers announced their alliance. The agencies are Wikirating and Public Sector Credit Solutions (PSCS). They both use crowdsourcing techniques, thus aiming to improve credit ratings. Wikirating employs a technology similar to that of Wikipedia in order to gather and aggregate information and views about credit quality for multiple categories of bonds. PSCS has provided an open source software tool which is used to calculates default probabilities for government bonds. It also has fully transparent sample models and data sets.
According to chief the executive officer of Alternative Bank of Switzerland (ABS), financial institutions worldwide must change their profit-mongering mindset. It is essential for them to replace the current principles with value-based banking practices in order to be able to contribute to the economy. Martin Rohner pointed out that the banks need to be brought back to their original economic purpose. The value-based approach removes profit from its first place, thus taking away the pressure of shareholders. Instead of striving for maximum profit, banks are to serve the community and the environment.
New client escaping from the debt crisis in Spain and the crisis in the Middle East turn to assets under the management of banks in Geneva. The outlook of difficulty for Swiss banks does not scare them. Thus, the amount of funds under management has grown due to inflow of foreign money, in particular from Spain and the Middle East. Geneva's banks are seen as shelter.
Potential for marketing Islamic funds cross-border in the Asia-Pacific and Asean is starting to be seen through the UCITS (undertakings for collective investment in transferable securities) platform. Despite the fact that it has already been used in Europe, it's the first time that it's being used in this region.
On January 16 2012 Kuala Lumpur-based CIMB declared the launch of three Islamic UCITS funds designed for cross-border distribution in Asia.
These funds will be registered and allocated in seven jurisdictions including the UK, Switzerland, Germany, Saudi Arabia, Bahrain, the United Arab Emirates and Singapore.
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I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.
Wa at Taufiq min Allah, all the best,
Michael Saleh Gassner
Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.
Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.
This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...
In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”.
Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.
Converting a business to Islam can increase the value of a company by 18-25% due to the scarcity of genuine Islamic investments. But the conversion process is arduous, extending from the design to distribution and beyond, to how the company spends its profits. As Sarasin notes, the market potential is massive, with the global Muslim population expected to increase by 26% to 2030, to 2.2 billion, rivalling China and India in terms of market size.
Ireland has conducted its first Malaysian-managed fund platform. The Central Bank of Ireland has approved the establishment of CIMB-Principal Islamic Asset Management (Ireland) Public Limited: a joint venture between Kuala Lumpur headquartered CIMB Group and Principal Global Investors.
The newly created joint venture will uphold a range of international Islamic funds on the platform from its Dublin domicile. Three equity UCITS are being registered: Islamic Global Emerging Markets Fund; Islamic Asia-Pacific ex-Japan Fund, and Islamic ASEAN Equity Fund.
Once registered the funds will be spread in the UK, Switzerland, Germany, Saudi Arabia, UAE, Bahrain and Singapore.
According to sources of the monthly magazin Bilan, a French language business monthly, the 'Islamic Bank of Switzerland' is seeking a license to operate out of Zurich, Switzerland. Investors are supposed to be from Qatar.
Sarasin-Alpen LLC, Oman, is a subsidiary of the private bank, Bank Sarasin & Co Ltd, Switzerland. Capital Market Authority approved that the bank markets Islamic securities, products and services to its clientele, along with its existing advisory services in private banking.
Sarasin-Alpen also influences the existing Investment Banking business of its associate, Alpen Capital LLC (Oman). Sarasin Alpen Group also has offices in Bahrain, India, Qatar and UAE.
“Islamic finance has weathered the storm. One of the world’s fastest growing asset classes before the financial crisis hit in August 2007 continues to expand”.
This headline in the Financial Times on 13 December 2010 emphasizes the growing significance of Islamic finance.
The School of Management and Law and its Center for International Business
welcome you to the annual
ISLAMIC FINANCE AND BUSINESS DAY 2011
Zurich University of Applied Sciences ZHAW
Room: SM O1.01
The key challenges and opportunities addressed in the Islamic Wealth Management Report are:
•Managing the Islamic wealth cycle through the entire process of wealth acquisition, preservation and distribution and achieving the required balance between spiritual and worldly obligations.
•Understanding the primary issues facing Waqf donors despite the strong growth drivers in this market: poor performance is due in part to the shortage of professionals leading to low quality asset management and lack of transparency.
•Considering the suitability of the Swiss private banking family office structure as a wealth management tool to ensure effective Islamic governance.
•Addressing the challenges facing Islamic mutual funds to achieve growth and performance.
•Recommending standardisation, education and diversification of Sukuk in order to increase the supply of products and the liquidity of the market.
•Analysing Islamic equity and indices performance over the last year to illustrate that diversification remains key for investment without compromising Islamic principles.
The report provides investors with an in-depth overview of the various asset classes in Islamic wealth management along with a synopsis of the market scenario during the past 18 months. The report also explores the concept of estate and succession planning, which Sarasin believes is insufficiently addressed in the Islamic finance industry and is a key element of Sarasin’s Islamic wealth management offering. Finally, the report provides an insight into the bank’s economic outlook for 2010.
The key issues and challenges addressed in the report are:
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