Funds

Islamic #funds, asset management sector poised for growth

A report by Malaysia International Islamic Financial Center shows that the Islamic fund and wealth management sector is expected to grow significantly. The report notes that Malaysia and Saudi Arabia have the largest market share of the global Islamic funds and wealth management industry, together holding more than 67%. Saudi Arabia contributed a 35.6%-share of $25.2bn and 209 Islamic funds at end of the first quarter of 2017, while Malaysia has the most number of Islamic funds globally with 388 funds managing a total AuM of $22.6bn. The growth of the sector stems from the fact that global fund and asset managers increasingly notice the potential of this sector. Since it is now also accessible to institutional investors, as well as non-Muslim investors, they began using it as a new way to diversify investments. In a projection by Thomson Reuters, the global Islamic funds and asset management industry remains poised for growth and should increase in volume by more than 8% to $77bn by 2019.

#Saudi #fund ‘to take over Riyadh financial district’

Saudi Arabia's Public Investment Fund (PIF) has finalized a deal to take over the management of the King Abdullah Financial District from the Public Pension Agency. As outlined in the Saudi Vision 2030 economic reform plan, the financial district is to be an economic free zone with visa exemptions and a direct connection to the airport. The first phase of the project is due to launch next year with plans to host the G-20 meeting there in 2020. The government is now exploring new options to attract financial institutions to occupy space in the district. The 73-building site has been restructured to reduce office space and increase the number of residential units. PwC and local regulator Capital Market Authority are among the companies due to take space in the area.

Islamic Development Bank forms $500M science fund

The Islamic Development Bank (IDB) announced it had formed a $500-million fund for scientific research. President Bandar Hajjar said the fund would find solutions to economic adversity using scientific innovations. He was speaking at the 33rd Ministerial Session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) in Istanbul. Hajjar added that the bank had received 100 million Saudi riyals ($26.6 million) as contribution. He also added that to address the issue of youth unemployment a five-year program has been launched to improve cooperation between universities, research centers, non-governmental organizations and government departments.

TASIS appointed as Shariah Advisor for Tata Group Shariah Mutual #Funds

Taqwaa Advisory and Shariah Investment Solutions (TASIS) has been appointed as Shariah Advisor for Tata Group Shariah Mutual Funds. They include Tata Ethical Fund (TEF), which is a domestic fund and Tata Indian Shariah Equity Fund (TISEF), which is an offshore fund. TASIS claimed that TEF was the only Shariah compliant fund in which charitable trusts are allowed to invest without attracting tax. Under the current agreement, TASIS is supposed to ensure that the investment and operations of TEF and TISEF are Shariah compliant. In India there is low awareness about investment in securities. The availability of options such as TEF would help this section of the society to become part of the mainstream financial system and hence contribute to the goal of financial inclusion.

Rasmala Trade Finance #Fund surpasses $100 million

Rasmala Investment Bank Limited (RIBL) announced that assets under management in the Rasmala Trade Finance Fund have recently surpassed $100 million. The Fund specialises in providing short-term structured and/or asset-backed liquidity and has delivered 34 consecutive months of positive returns generating an annualised return of 4.5% for investors since inception. The Fund has seen interest from regional and international institutional investors as well as family offices, corporates, and high net worth investors. The Fund provides a regulated Shari'ah compliant investment vehicle to diversify international asset allocation. David Marshall, Head of Products at Rasmala, said the team worked hard on expanding the Fund’s asset base while matching inflows with investment opportunities. He promised to remain focused on tailoring products that offer clients real alternatives.

New #fund offers opportunity to tap into global market

CIMB-Principal Asset Management (CIMB-Principal) announced the launch of its CIMB Islamic Global Equity Fund, the latest addition to its suite of 20 Islamic funds. The fund offers Malaysian retail and corporate investors an opportunity to tap into the growth prospects of global equities. It is currently available to investors in MYR with a minimum initial investment of RM500.The fund will invest a minimum of 70% and up to a maximum of 98% of its NAV in syariah-compliant global equities and equities-related securities. 28% of the Fund will be invested in sukuk, syariah-compliant money market instruments and Islamic Deposits. CIMB-Principal CEO Munirah Khairuddin says global equity markets continue to be in a sweet spot with strong earnings in both emerging and developed markets. She hopes to meet the target fund size of RM300 million in assets under management within a year of the fund’s inception.

Dubai’s Arqaam Capital launches specialist fixed income #funds in DIFC

Dubai-based investment bank Arqaam Capital has announced the launch of two specialist fixed income funds located within Dubai International Financial Centre (DIFC). The high income fund will invest in emerging markets with a focus on the MENA region and will include a mixture of fixed and floating rate investments. The Islamic fixed income fund will invest in sukuk issued by sovereigns, quasi-sovereigns and corporates. Arqaam Capital said the funds are denominated in US dollars and pegged currencies and will target annual returns of 6 and 7%. The new funds will be co-managed by Abdul Kadir Hussain, head of fixed income asset management, and Zeina Rizk, director of fixed income asset management.

#Indonesia aims to have world largest #haj #fund in 10 years

In Indonesia the newly established Haj Fund Management Agency (BPKH) has pledged to match the performance of its Malaysian counterpart Tabung Haji. The BPKH will manage Rp 99.3 trillion in haj funds, gathered from 3.4 million people who have paid deposits to go on the haj, by investing in sharia-compliant instruments. BPKH chairman Yuslam Fauzi says the agency aims to be the world’s largest haj fund manager within 10 years through diversified investment with an 8 to 10% annual return. President Joko Widodo inaugurated the executive board of the BPKH, which is taking over management of the haj fund from the Ministry of Religious Affairs. Indonesia has sent more than 200,000 people to Mecca on the haj. The waiting list for the haj is 15 to 20 years.

#Malaysia's Lead in Shariah #Funds

Malaysia remains a frontrunner in Southeast Asia's Shariah fund market, with $24 billion in Islamic mutual fund assets under management for the year ending May 2017. Global analytics firm Cerulli believes that Malaysia will preserve its pole position in Southeast Asia, while Indonesia will take a longer time to catch up, given the bias toward domestic investments. Malaysia's lead is largely due to its government's support of expertise in regional and Shariah investments. In January 2017, the Malaysian Securities Commission unveiled a five-year Islamic and wealth management blueprint to become an international Islamic finance center. Global firms have been encouraged to set up Islamic units in Malaysia through tax incentives and signing mutual recognition agreements with Dubai, Hong Kong, Ireland, and Luxembourg. The country is also embracing financial technology with new initiatives and regulatory support. Kuala Lumpur-based Farringdon Group recently launched a Robo-adviser service which follows Shariah investment guidelines.

ICD and Saturna launch #sustainable Islamic #fund

The Islamic Corporation for the Development of the Private Sector (ICD) and Saturna have announced the launch of the ICD Global Sustainable Fund. The fund is designed for investors who seek to align their investment goals with social values. The launch of the fund enhances Malaysia’s position as the marketplace of innovation. ICD serves as one of the Fund’s seed investors and advisor, while Saturna is the Fund’s investment manager. The Fund will invest at least 80% of its net assets in equities of global issuers that demonstrate sustainable characteristics. The firm uses a proprietary ESG rating system to identify issuers with sustainable characteristics. Investors can buy the Fund with no sales charge, paying only low administrative fees and transparent distribution fees.

MIDF Amanah to introduce new shariah #fund for high net worth investors

#Malaysian Industrial Development Finance (MIDF) Amanah will introduce a new Shariah Equity Wholesale Fund for high net worth investors with a target to raise RM100 million. The fund will have two special key features, the first being that the fund will have zero entry fee, which means no sales fee will be charged to investors. Secondly, the fund will pay zakat on behalf of its investors. MIDF Amanah Asset Management and Amanah International Finance have also transitioned into fully Shariah-compliant entities.
The equity portfolios under MIDF Amanah have seen an overall exceptional performance in the first quarter this year with gains ranging from 10% to a high of 15%. MIDF managing director Datuk Mohd Najib Abdullah said the conversion of the asset management arm into a Shariah-compliant entity will cater to the ever growing demand for Islamic finance products and services.

STC Establishes Venture Capital #Fund

Saudi Telecom Company (STC) has decided to form a $500 million venture capital fund to develop digital innovation in the region. During a news conference in Riyadh, STC CEO Khaled Biyari said the huge growth of e-commerce in Saudi Arabia represents an additional value to the expected success of the new fund. He stressed that Saudi Arabia has ambitious youths who have entered the field of e-commerce and the digital sector and achieved success. STC Ventures CEO Abdulrahman Tarabzouni said that the first investments of the new fund will be launched in the first quarter of 2017.

#Turkish wealth #fund head says signed Islamic mortgage deal with IDB

Turkey's new sovereign wealth fund has signed a framework agreement with the Islamic Development Bank (IDB) to develop Islamic mortgages. Turkey's government has already transferred stakes worth billions of dollars in Turkish Airlines, major banks and other companies to the wealth fund to finance big-ticket infrastructure projects. Fund chairman Mehmet Bostan said the fund had authority to support mega projects but its priority is to invest in leading global industries in areas like technology, telecoms and energy. Bostan said financial technology was one of the fund's areas of operation, adding it was working on a joint payment platform and mobile banking. He added that the Turkish fund has received invites from other national funds and was negotiating with two of them after signing an agreement with the Russian Direct Investment Fund (RDIF).

ICD, Tamkeen & Ibdar launch $100million #Bahrain #SME #fund

The Islamic Corporation for the Development of the Private Sector (ICD) in partnership with Ibdar Bank and Labour Fund Tamkeen has announced the launch of the Bahrain SME fund. The Bahrain SME Fund is a Shariah compliant mezzanine private equity Fund which will invest in Bahrain’s Small and Medium Enterprises (SME’s). The Fund will target SME’s with high growth potential in consumer, industrial, ICT, education and healthcare sectors, as well as sectors experiencing dynamic change. The Fund will add immense value to Bahrain as a tool for SME growth and development where 90% of Bahrain enterprises are SMEs and their contribution accounts for about 30% of the Kingdom’s GDP.

MAVCAP set to hit $50m first close for Meranti Fund, Elixir-partnered Islamic #Fund

Malaysia Venture Capital Management (MAVCAP) plans to announce a $50 million first close for two of its funds that will be launched this year, Asean Growth Fund and Global Islamic Economy Fund. The combined size of the two vehicles will be about $450 million. MAVCAP CEO Jamaludin Bujang said the Asean Growth Fund is $200 million vehicle, which is jointly launched with China-based Gobi Partners. This vehicle will be termed Meranti and will focus on later stage funding for technology related companies in Malaysia and Southeast Asia. In fact, MAVCAP is weighing options for the Islamic fund that is looking to invest in Shariah compliant and Halal sectors. Apart from the Asean Growth Fund and the Islamic fund, MAVCAP is also working on a clean-tech fund that will invest in companies that help reduce environmental stress. Bujang said the clean-tech fund could have a targeted corpus of anywhere between $50-$100 million.

#NCB Capital #launches Pan European #Real #Estate #Fund

NCB Capital, Saudi Arabia’s leading provider of wealth management and investment services, and the Kingdom’s largest asset manager, has announced the launch of its Pan European Real Estate Fund with more than $150 million raised through a private placement.
NCB Capital has partnered with Fidelity International, a leading global asset manager, to invest in commercial properties, including office, retail, logistics/industrial and mixed use, located in key European property markets including France, Germany, Benelux and the United Kingdom. Favorable currency conversion rates, robust legal and regulatory environments, coupled with consistent growth expectations of the core European economies make this an opportune time to invest in a solid real estate market.

QInvest’s income-generating #Ijara #fund oversubscribed

#Qatar’s QInvest has successfully launched its QInvest SQN Income Fund. It aims to pay out a net yield of 7% per annum on a monthly basis and has a targeted IRR of between 8-9%, with a tenure of 5 years. The Fund invests in the leasing and financing of business-essential, long-life, revenue producing equipment across developed markets. Industries include health care, manufacturing and agriculture. QInvest plans to launch another fund in the same series later this year. QInvest CEO Tamim Hamad Al Kawari said the new fund provides investors with concentrated portfolios with means of diversification and risk mitigation. It provides attractive returns and a regular income distribution, all within a relatively conservative investment profile.

KBW Investments launches Islamic #fund

In this interview HRH Prince Khaled bin Alwaleed bin Talal reveals the full story behind his investment firm’s jump into the Shari’ah space. He founded KBW Investments four years ago and launched in mid-January his newest company, ARADA, in partnership with Basma Group. KBW’s first movement in the Shari’ah-compliant investment space is called Crestmount Capital. Prince Khaled found the fairness of Islamic finance most appealing, the extensive work in preparation of launching Crestmount Capital with Amanie Advisors has been really educational. The projects that Crestmount Fund will invest in will be delivered by PietyTHP Developments, which is a joint venture between Piety and the property arm of Lembaga Tabung Haji of Malaysia. Crestmount Fund I, a Shari’ah-compliant real estate private equity fund, is structured as a Cayman Islands entity. It will fund five identified under-development residential projects in Sydney, Australia, through Shari'ah-compliant commodity Murabahah agreements.

#Turkey's SWF to focus on securitization

The first act of business by the Turkish Sovereign Wealth Fund (SWF) will be the issuance of securities, while it will also focus on Islamic finance products in securitization. The fund will contact local and foreign investors for securitization over the next few months. Even though the Treasury announced that the transferred asset size was approximately worth $160 billion with an equity size of $35 billion last Friday, an endeavor is currently underway concerning the valuation and auditing of the transferred assets by the fund. According to a Turkish daily, Dünya, the fund is exploring various types of instrument models, especially in Islamic finance. For this reason, the issuance of sukuk is a major focus of the agenda for the fund.

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